I've got an Epson 1200. Had it for years and have used the heck out of it. Despite your reservations, I think you must consider hardware failure as a posibility.
Shut down the computer. Unplug it and turn off and unplug the scanner. Count to thirty, cross your fingers and bring everything online again.
If the problem remains, it doesn't look good. Of course you could replace the USB cable, reinstall twain drivers, etc. But if you get to this point and still have the problem, my nickel gets bet on hardware failure.