To buy a house - Part 2

So after about 25 showings, talking to the bank, looking at my finances, and another few weeks of 2 hours a day in a car, I think I've found the one I would be willing to make an offer on.

Here is the info on the home, here is my offer logic - -- do those in real estate have any opinion and care to comment - good or bad.

House itself:
Classic older style home - Brick for the foundation and first floor - new siding on top floor
3 bedrooms - Master is large, other two are average in size ---1.5 baths
Kitchen is dated but a good size
Nice Living room that flows to a nice Dining room
Full basement partially finished - foundation looks in great shape, all mechanicals have updates (electrical/furnace/plumbing/etc)
Roof, windows, and siding redone.

-- Here is where my offer logic comes into play --
Originally listed 05/05/2010 @ 140k
Price dropped on 5/29 to 131k
Price dropped on 9/12 to 119k
Home removed from MLS for 3 months (maybe updates/windows ect ect)
Relisted 10/3/2010 for 119k
Price drops 8/2/2011 to 115k

... They've been on (and off) the market for almost 545 days now. They have dropped the price 25k and still haven't moved it.

The assessment on the home is at 81.5k ( I assume they haven't had another assessment since the updates - but I don't care for offer sake)

Homes in the area are selling, on average, 3% below assessments - so am I bad **** crazy to offer 80k on the place? My dad says the golden rule of offers (offer would you would expect if YOU were selling the house) is out the window these days. He just had two places close by where I currently live for the following
Asking 256k -- sold @ 180k
Asking 349k -- sold @ 240k

115k wouldn't pay, 100k I would think about, 80k I would certainly pay. Worst they can do is say no right?!

Any insight would be great - thanks!