You may not want to live a dual life, yet you can't just stop living when you are not with the kids. Do work on GAL, even if it isn't going out. Keep moving forward during the times you are not with the kids.
I think it's easy for the LBS to think that the WAS / MLCer remains confused, if they are not coming back to the LBS. In their minds, they are NOT confused. They are making a life for themselves and feel it is for the best.
Even so, there is probably still some confusion in your W's life. She can't seem to find her new "Mr. Right". As though dating lots of people is going to help her find that "right" one. When what is really happening is, she has missed that there are probably things in her that she needs to work on in order for the right one to show up and on the other hand, that there is no "right" one. Simply the one we choose to be with and work on building a R that works for us.
My stbx's OMs didn't work out for her, either. Now she's been actively dating for a few months. "Friends" stepping up and making recommendations for dates of their own single friend pool.
I wish her the best, of course. More, I wish her a good choice, that my kids won't be in the influence or shadow of some goon. I will be interested in seeing how long it will take her to realize that being with someone is not going to make her happy. She has yet to be alone. She's still seeking happiness outside herself. An observation of course. I do think that her pool of fish is small and shallow.
Anyhow, you are right. It's not your problem that your W has blinders on. Keep growing and keep moving forward. Your life will continue to get better, regardless of how that future might look.