Iomhaigh, have you been living in my head?? You described exactly the phases I went through. Your post was brilliant, but I will add that these phases come and go and come back (and go away again), and they often overlap one another. (And yes, tamiam, even with all the other stuff iamhaigh said, there
is glee!)
I feel that I should be dreaming up topics at this point, but I'm afraid that if I come up with something novel my advisor will feel like I'm leaving him in the lurch.
Whether your topic comes from your head or your advisor's,
don't take it on unless it interests you--a LOT. Look at iomhaigh's phases again. Your topic has to be compelling (to
you) enough to get you through those low times.
FWIW, my initial advisor knew very little about my topic. Hu was a BigName with lots of projects of hus own, and hu relied heavily (!) upon grad students to get them all done. Even so, hu was happy to take me (and my topic) on. After hu went on to greener pastures in another state, my new advisor was interested in my topic, but knew far less about it than I did at that point. Hu still took me on (with a nearly completed proposal that hu had no hand in shaping, I might add!), and things worked out fine: They call me Dr. Infopri now. (Glee!)
I suggest that you talk with your advisor about this dilemma. If he's such a great guy, he will be upfront with you about how he wants you to proceed with your topic selection. (In fact, you've given me an idea: I don't have time now, but later today/this eve, I think I'll start a thread on diss-topic selection.) Remember, though:
Your interest in the eventual topic is key!!!!!! I truly cannot stress that enough.