Sounds like you actually did a great job of setting boundries. You're getting your life straightened out and she's noticing. I think the most important thing here now is giving your children what they deserve. She knows your a good dad.
I remember my XW saying that I would make a far better dad than she would be a mom. She was just too selfish to give to our marriage or children. As stubborn as she is, it will be a very long time before she will realize what she has done in full. I think that's the case with most of these WAWs. It all takes time. Well, I'm sure when she finds out that I have a girlfriend now, she'll freak and the process will accelerate. BUt I've moved on now and I neither want or need her anymore.
Formerly SGfan M:38 W:33 M:8 yrs T:10 yrs Bomb: Dec '08 Separated: 4/18/09 Divorce: 8/28/09 XW Affair began: April 08