Anthony, hopefully Sandi and other will chime in. Your W doesn't sound totally unreasonable. You probably understand how she can feel this way right? Maybe tell her that. Then, it's up to you to decide if living together will work for you while she (presumably) still sees OM.
She isn't necessarily cruel for talking to the kids, the kids know something is going on. I could almost guarantee it. Maybe she's trying to look out for them.
I'd say that either way you have a long journey of growth ahead of you. We'll be here to help.
H 34 W 29 BD 3/12/18 Divorce Busted Spring 19
It is not things that bother us, but the stories we tell ourselves about things.