Phil's wife is the only one in this equation who shows the courage and ability to change.
Walking out on him was probably the hardest thing she's ever done.
She's going to get through this stage and if she's smart, she'll get her act together and keep the kids the majority of the time. If not...the kids are only going to suffer more and become dysfunctional themselves.
At any rate, if/when Phil hits rock bottom he will become one of two things:
Humble - finally accepting responsibility for his own behaviors and maybe then he will seek real change
or
Bitter - and continue to blame everyone else in the world for the fact that he's an egotistical, obstinate jerk.
The best thing that could happen to this guy is for him to lose every single thing he has.