They say we will be better off working through them, with the developers they have approached.Are we better assembling ourselves and working with a developer(s), rather than going through this middle man?

I prefer to just skip the middle man and do the "hard work" myself.

well a great and wicked-smart consolidation would look something like get them all borrowing and high leverage, via getting the middle-man to sell your "crack" and for logistical ease, when time comes, do it in a way where your taking over masses by taking over the few "crack-dealers of finance".     

Then you will be informed enough to make a rational offer on the property. 

Do you think my thought is rational or am I too pestimistic about housing market? 

I just do not see any rational/benign reason for them charging so much in deposit up front considering that the house has not sold for 6+ months and I will be able to close relatively fast. 

Real wholesaling is buying something in bulk and or for a middleman’s price and then reselling at a retail price.

It's rational to be scared of success when you are so young and don't know the steps to take to get there.

This isolationist rationalizing that US is the greatest because we were the greatest and there for we will always be the greatest is just IGNORANCE-squared.

If the answer is no then you are feeling desperate and not thinking rationally.