Personally, I feel he really didn't give you any options at all. Yes, he wrote 3 different scenarios, but then tried to argue in the same email, why 2 of the options wouldn't work.
I don't think he had any intention of having OW go to a motel at all, he just wanted to sound like he wants to do the right thing.
Bottom line, when it comes to the best interests of your children, STAND YOUR GROUND. Your H needs to realize that this is confusing times for your kids and what is best for them needs to come first. If he wants to see the kids for the holiday, then OW needs to stay away. If he wants to see OW, then the kids stay with you. It's too soon to do this to them.
Just my opinion of course.
"Everyone you meet has baggage. Find someone who loves you enough to help you unpack." ¤Formerly DelinquentGurl¤