My heart goes out to you deezee. I basically got the same story from my WAW last month when she left. She had been unhappy for the last three years, she had no feelings for me anymore and needed to get her head on straight. While she was telling me this, she had already been involved with the OM for about a month. I have not had any communication with her for the past four weeks.
I agree with you, it is almost impossible for the LBS to compete with the new fantasy relationship that is unencumbered by reality and baggage - at least initially. I am not sure what to do right now, so I am focusing on me and doing absolutely nothing related to her.
I am still early in the game, so I have a little more optimism than you may have. However, my gut feeling is that we are over. However, I am not planning on initiating any action for now. I will see how I feel in a few weeks or months unless she decides to file for D or has some change of heart.
This all TOTALLY sucks!! I too would be interested to know how many of these situations are really resolved in a successful manner. Again, I am so sorry to here about the latest happenings in your sitch.