SecondChance, Your husband is bouncing all over the place...mlc confusion. He wants to reconcile and yet, he wants his own place and is decorating it. Quite frankly, the man doesn't know what he wants except to be reassured that you will be there for him no matter what. Reminds me of someone who wants to leave home, but is still very much tied to "mom's" apron strings.
I honestly don't think he'll be much better if he were living under the same roof w/you. He would be constantly picking and complaining about anything and everything you do that he doesn't like. Nothing will please him while he's like this.
At least w/him living at another location, you've had some breathing room....what will you have if he moves back in? You could always to a trial run for a full weekend, Friday to Sunday, to see how it goes.
I think you've done a great job in detaching and staying out of drama. He's still got a ways to go before he settles down.
Sit quietly, the answers will reveal themselves when you least expect them to. The past is gone, the present is a gift and you need to focus on today, allow the future to reveal itself when it is ready.