Good for you with being able to walk away from her baiting of you and for being able to "let things go" because you can see where it is headed - into a no win situation!
Well done. Good work on keeping yourself focused on the present and moving in the right direction for you and your boys.
Perhaps soon your W will be able to turn the corner for her own sake. That is all you can hope for. I know that my XW is currently in a good place for herself which has helped our relationship going forward, but I'm not putting complete stock into it until she is consistent. However, for now, it is nice.
I hope you're sitch will get there soon so you can be able to relax a bit as well.