[quote name='munkonthehill' post='1158891' date='Mar 12 2011, 02:34 AM']the guitarist is turning himself down...[/quote]
Wow, even though he's not pulling his weight, it's worth keeping him just for the novelty value.
Seriously though, sorry to hear that you've been having a rough ride. I think (from the sounds of it) you've already made your mind up. It's always crappy when a band splits up, but it sounds like you all want different things - some people want to gig and do it properly, others want a hobby to tinker with.
Fortunately, good bass players with commitment, transport and their own gear are never without a band for long... Good luck with the next project.
Cheers, Paul