You're absolutely right, BCG. We spend entirely too much time at work to afford to be miserable while we're there. You've stuck it out long enough to know that it's not a temporary situation. The unpleasantness is effecting your health and happiness, scary as the next step is, it's probably the right one.

Unfortunately the blind cannot be shocked into sight, most of the time. The powers that be are not going to suddenly realize your value and amend their ways. You can choose to make a big stink on your way out the door, but I've never known it to do any good. Just trust that justice will be done in other ways, your manager sounds like the sort to create this environment wherever she goes. She's stuck with the miserable working conditions that you have the ability to leave. Remember that you're doing this for you, not to teach them a lesson.

Good luck and fingers crossed for the next stage.