A few more thoughts. (And thanks for keep us all updated.)
Your agent is probably as frustrated and perplexed as you are. You've had a large number of showings, yet no offers. Based on your additional comments, I--well, not retract, but--modify my previous comments. I still think there may be something you're not picking up on, or that your agent isn't, that's turning people off. But from your very good, detailed descriptions, it sounds like it's very subtle...not the obvious bad odors or bad neighborhood.
My guess would be (and certainly ask your agent) that while he thinks your house is properly priced, he also knows that "anything will sell at some price." And that's his strategy. And it's understandable, though frustrating. Give him credit, you're still averaging nearly two showings a day.
Here's a strategy that is worth trying. You now know 60 or more people who are looking for a house in your geographic area in your price range with the basics (number of bedrooms, number of baths) matching what you're offering. Those are very hot prospects. OK, some may have bought something else. And some may have decided not to buy. Still, it's a great list.
Market to that list. Really market. Send each one a personalized letter, hand-written, every week. To save yourself some effort, Google "yellow letter." Essentially, you hand-write the letter once, leaving the person's name and some other information blank. You Xerox the letter, then fill in the person's name and the other information by hand. Done properly, the whole thing looks handwritten. Don't use the yellow legal pad that "yellow letter" proponents recommend. Use nice stationery.
Make each letter pleasant and chatty. Let them know that you appreciate their viewing your house, and that it's still available. Put something in each letter positive about the house, and something positive about the neighborhood or community. It's the same strategy that rockinblu recommended about good vibes. If you have some photos of the house or neighborhood looking especially nice or interesting--Christmas carolers outside, or flowers in bloom, have enough copies made so that you enclose one in each letter. (That's similar to the "lumpy mail" technique, another marketing device you can Google.)
Make each letter interesting, positive, and upbeat. Enclose something with each letter. Maybe even a favorite recipe. Mention any improvements to the house, like the painting. If something appears in the local paper about your community, make copies and enclose that. (That's called tear sheet marketing.) Make sure your contact information, as well as that of your agent's, is on everything you send out. Maybe every other letter, say something like, "Maybe you know someone who'd like to live here? If so, please let them know about my home." Use a "live" postage stamp, not a meter. Handwrite the address and the return address.
Give that a try. It's not expensive. And it's pin-point targeting.