No, don't tell her you're upset. She is not your confidant anymore, and sharing your sadness makes you look weak, and weak = unattractive to women.
If she asks you directly, just say, "I don't like the situation, but I understand you feel there's no way to improve things. I feel differently, but I respect your opinion." Save the rest for a friend or a counselor.
Also, get busy. Either go do things with the kids, or start to Get a Life (GAL) outside of the house. What hobbies or friends have you dropped? What have you always wanted to try? When my sitch took hold, I got involved in Meetup.com groups, pushed myself to meet people (it was my first year in a new city, and I used to be very shy), joined a writing group, went to free concerts in the park, began walking daily (it helped to release the anxiety and stress), and read voraciously. H and I shared a house, but he moved into another bedroom as a compromise for not moving out. I treated him like a roommate, and Acted as If. I made sure I looked and smelled good, and there were times I'd just go hang out at the bookstore for a while to keep myself busy and make sure I was getting home later than he was.
It was an amazing time for ME. I made a lot of friends and finally got over my social anxiety. I was active and had a lot of fun. Therefore, when H was being all phantom of the opera, I just ignored him and kept smiling.
Have you read the books yet?
SD
Me: 40 H: 43 H had EA from 2/06-9/06 Bomb 5/06 Piecing since 9/2006 3/2008: Boundary setting 7/2009: Boundary crossing~dropped my own bomb. 8/2010: Marriage finally on track!