QT - sounds to me like perhaps it is time for you to see what else is out there. Once an employee is unhappy they generally tend to become less productive and a negative roundee round is begun (as you have already atested to). No need to get down about what is going on around you. Just take it as a sign that perhaps you have outgrown the company? Put some feelers out. I am thinking that you would probably be pleasantly surprized at how valuable you are in the work world so why not take a look around?
As for ass-kissing; any manager who can't see what is what is a dope pure and simple and goodness knows I've experienced my fair share of this situation. Who hasn't?
I never ever socialized with those that I managed as I never knew when I would have to fire them. If I developed a personal relationship w/them then this would make me less effective management. I mase no bones about letting my entire staff know that I was not there to make friends. I was there to make money. I could care less if they loved me or hated me, bottom line was I was there to help them excell. If they were incapable or unwilling to let me help them then they shouldn't let the door hit them in the ass on the way out.

...worked out exceptionally well for EVERYONE in my department.