You and your wife have been in a world of fantasy, She has crossed the line from fantasy to real life by engaging in at least an emotional affair.
I believe that your wife has lost all respect from you. For example I believe that when the other man's flowers were in the same room with her it was a test when she moved them closest to her. I would have taken those flowers out of the room, and if asked, say, I will not have another man that is pursuing my wife give her flowers. It is disrespectful to me and I will not allow it. Strong, confident then drop it.