Anyone else ever have a slump?

I am a newer cyclist and having a hard time motivating myself to get on the bike. I primarily got the bike for commuting but find it discouraging to ride. My commute, as I've said in other threads, is only 2 miles, but the second mile is all uphill, and I've yet to be able to conquer the one very steep hill, so I walk it.

It's so discouraging. I have these images in my mind of being able to ride and love it, but I'm not loving my commute right now. I've gone back to riding the bus to work because I'm so discouraged even though it takes almost 3x as long. And I'm not motivated to ride for fun, either, because the whole city is so hilly - it's hard to find a flat area.

I'm also not in love with my bike. I got it at REI because it was decent at a good price, but I've never tried out LBS bikes, knowing that they cost more than I'd want to spend.

Any wisdom or encouragement? I was so inspired by that article posted about women cycling at every age, but it's still not enough.