> a few projects even prompted companies to reach out to me first
This raises a flag for me. If they're reaching out, they must be convinced of your technical ability.
I understand you're frustrated and I don't want to read too much into your post. However, how you're talking about your relationships, being blunt, working at desperate places, it makes me think your interviewing skills need work. A single interview faux pas can remove you from consideration. Being negative or highlighting your faults puts you in a bad light. It's entirely possible to remain positive, but still be honest about your experience.
I might have phrased "acknowledging their deficiencies" too literally. To give you an example, I once interviewed someone who couldn't even explain basic terminology. Their github was just OK. Yet, they knew about the company. They spoke intelligently about their projects and seemed excited about what the team does. They knew the technical portion didn't go great and were able to 1) convince me they could learn and 2) positively related their existing experience and prior ability to learn to the requirements of the position. Great junior.
For the pay cut, there's too many factors to assume, but in this situation, I'm not paying senior rates for lessor work. You also have no leverage so you'd be at wherever I value the position and my belief in your ability. Again, if you can prove yourself after hiring, I'd bring your pay up to an appropriate place.