2. You need to take stock of what you've done these past 3 years. How are you different today from when you started? THAT is your "career credit", and you need to figure out how to communicate that to a big company. You probably have a ton of management skills (project management, people management, time management, etc). Big companies like that.
3. There's NOTHING wrong with going to work for a big company. Big company = stability, and after a long roller coaster ride with daily uncertainty, that can be appealing. You can always start over if it turns out you're stuck with the entrepreneurial bug ;-)
The key to being an entrepreneur is failing fast, right? You're 3 years in and haven't launched. Why? Do you know what your customers want? Because once you build what they actually want, no matter how crappy your first launch (within reason), you'll have the opposite problem of not being able to retain enough talent to keep up with their demands. You'll be constantly inundated with emails to the effect of "Yeah I really like your product, but it'd be so much better if it did X..." Failing is not just the CEO's decision; it's EVERYBODY'S decision. YOU are an entrepreneur, too. Use your spidey sense!
And make sure you're honest about it when you talk to your CEO. If you can't come to common ground, that's too bad, but if you CAN, you might turn this around yet.
Also: Read up on Founder's Syndrome if you haven't yet: http://managementhelp.org/misc/founders.htm
Edit: And if you're an Android or iPhone developer who's interested in education and games and lives in the bay area, forget everything I just said. Your company is beyond help and you should come work with us ;-)