If you hang tough and then they still want to proceed then it is obvious there is or was no other buyer. Why not turn the tables on the EA and tell him you have found another house and you want to pull out - look for 10K off the price etc.?
Problem is they are not hanging tough asin delaying, they are simply following the right procedures. If they 'turn the tables' then they risk losing the house.
Well only you know really if its the right thing to do, and if it means you stop pulling your hair out then it possibly is. I am a bit surprised that your dream home is being let go because of one phone call from an auctioneer, but best of luck when your search resumes.