There is nothing more frustrating than having a dog that is NOT a good fit for who you are as a person, or your lifestyle. I've been there, done that. Luckily for me, I had family where the dog (Chloe) fit in perfectly and they didn't mind keeping her, so I was able to "rehome" her in good conscious, knowing everyone was better off.
Could we have made it work? Eh, probably. But doing so would have just added extra stress for not only ourselves, but also Chloe, and I feel like everybody involved, including her, would always have been a bit dissatisfied. I still think about the "what if's" sometimes and even offered to take her back a few months ago when Mom was having some issues with her, but it remains the same: we could make it work, but someone would be unhappy.
Another good example is Gracie and Cooper. We inherited them after their owner, a relation of Michael's, past away and they were a HORRIBLE fit for our lifestyles. Great dogs, we loved them, we intended to keep them and did keep them for a year, but it was just stress after stress after stress. We finally placed them with my mother and grandmother and the dogs are SOOOO happy now, as are their new owners.
There isn't an easy answer. In the end, do what you think is best for yourself and your dog, be that sticking it out and making it work or placing the dog in another home.