When USB ports quit working like that, the USB controller is usually to blame. If reinstalling drivers doesn't work, it's hardware related. The two parts to a USB port are the power and data leads, so even if you're getting power, it doesn't mean the data transciever is working. On most PC's, particualarly on a laptop, the USB controller is integrated into the main board. Good for a smaller footprint and lower purchase price, but bad for a parts replacement price. The work around you have in place is the most cost effective solution. Good job! 
"some people are like slinkies, they're not really good for anything but they can bring a smile to your face when you push them down a flight of stairs." –Unknown
"He did for bullshit what Stonehenge did for rocks." -Cecil Adams
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