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[rugger101]

You were in the exact same place I was six months ago.  There are still days when I ask myself "Why am I doing this again?"  The best thing I did was start talking about my trials and tribulations with other administrators.  I found many had similar experiences (some even worse).  They told me the following and it has kept me going.

1) Focus on the good.  For me, I find working on student programs and alumni fund raising very rewarding.

2) Understand there may be a very small group of faculty who will oppose you, be passive-aggressive etc. if they don't get their way every time.  Just move on and understand this is part of their nature.  They are not against you, rather they are opposed to what you represent, i.e. someone who tells them no.

3) Absolutely control your time and be sure to take time off for yourself and your family.  My chancellor told me he likes to garden to relieve stress.  I like to workout.  Another chair likes to run during lunch.  The work will still be when you get back.  Turn off the blackberry!

Hang in there!

[plunkett]

....while espousing excellence, it thrives on mediocrity....

If the truth be told, I think most of us work at institutions where this is the case. 

Although the specifics at my place differ, I think a common theme is the powers that be are not ready to walk the talk in providing leadership, support, and resources to move from mediocre to excellent.  But I suppose talking about excellence is easier than actually doing something to get an institution there. 

OMG, Zharkov is so correct here.  So painful, but so true!! This from him belongs in the HOF.
OP, I'd say you can resign from the chair-ship when this semester ends.  You've done enough, and you'll give everyone enough lead time to figure out a decent-enough new chair. If you're miserable, definitely cut your losses.
But there's no possibility that the dean will pull a fast one and dump the chair position and put your dept. under the control of a director, is there?
Quite a few institutions are trying to do that sort of thing so that deans and prezzies have more control.

[entwife]

God knows, this place is a dichotomy:  while espousing excellence, it thrives on mediocrity, but it does chew up and spit out the people who give it our all.  At the end of the day, the do-nothings are going to retire with the same pension as I'll get (and with a lot lower blood pressure and a lot fewer gray hairs than I've already accumulated).  So I'm left to wonder: who's the stupid one?  Never mind....I think I know the answer, and I know how to fix the problem.

Gosh, sounds just like my place - sans pensions and unions. But we do have a long history of chewing up people who care (and God knows, I do). Actually, every place I worked at (all private) or studied (all public) were kind of like that... now that's scary. And the private ones were worse... Ah well, at least here I like people I work with immediately, including the Provost.

You do sound absolutely burned out. Coming from a fellow workaholic: do scale down. Ditch the admin. Be good to yourself. I wish I had the guts to ditch the admin. 

[plunkett]

Yes.  Amlithist and Zharkov have both voiced it beautifully in all its horror:  the solid grip of mediocrity which bedevils so many of our institutions.