I still fake it with the kids, and other people quite often, but I feel like my more genuine, less closed-up self is beginning to emerge. There are days I lose myself in happiness just doing something silly with my son, watching a movie with him, or even taking him to get a haircut and watching him describe how he wants it done.
I think where your wife lives is immaterial these days as she is doing less overt harm to you, the kids, the family. Whether she will continue to reintegrate into the family or move the other way is an unknown and out of your control. So good to focus on the things you do control, far less crazy-making.