Something to remember with Google and backlinks: changes take time, sometimes months.
Recovery is possible, and I am sorry you are feeling desperate in your situation. The fact is you are doing the right thing by looking into the links of your site and getting rid of any ugly linking domains.
Outside of links, have you compared your seo (on and off page) to the top ranking sites in your industry? A lot of people say that their website is informative and has well done seo, but usually that is because they are so close to their own site to see any errors. (can't see the forest for the trees) Informative doesn't necessarily mean well-optimized.
I would do a competitive analysis along with your link removals. What I would not do is sit back idly by while waiting for Google to put your changes into effect. Be proactive while you wait, and when they do come around and see you have made positive changes in all areas of your site you might get your old ranking back.
Question: what methods did you use to determine what links were bad or harmful?