In 2009 my expartner and I were dancing on a regular basis and competing about every two weeks. At Nationals in our level we came one recall from making the final (it was out of a first round, if I'm not mistaken.) At other regional competitions we were making the final regularly.
A few weeks later we felt like we danced really well at a competition in Boston. However, for some reason, we didn't even make one cut. We were dancing pretty much against the same people.
I have no idea why we didn't get recalls. I know I danced well. My partner knows we danced well. It just happened and that's how it is sometimes. No reason to hold grudges or to stop dancing.
Not doing well at a competition is not a good reason to quit. Sometimes you'll go through a streak where you don't make a single cut comp after comp.
A good reason to quit is that there are goals more important in life for you to focus on than dance.
In the few minor competitions I've participated in, I danced with my partner (teacher), NOTfor anyone else. Quite frankly didn't care what the judges or audience thought.
Questions you can ask youself:
Would your teacher give you an honest assessment of your dancing or an ego massage? The former is good, the latter is useless.
Is it possible that the judges don't like you for whatever reason?
Stranger things have happened.