I like what you said about not competing with the Ow. She is doing just that - she is trying to buy your H's affections and attention. If he needs it pointed out to him again, you were right when you said that he is her life. She has noone else relying on her (you do), she has more expendable income since she lives alone (you don't), etc, etc.
I think you do a great job of living your own life.
Maybe planning a special trip for the two of you is a good idea. Ever thought of doing a fly-in fishing trip? I can give you some names of places you would enjoy too. He would love that wouldn't he? And just think - no cell phones will work up there - it would be just the two of you.....
Do it sooner than later. Also, I would tell H that you think that for his 50th birthday that you think he needs to be home with his family. Tell him that it is really presumptuous of OW to plan an event at a time when family should come first....
I still think that your H is making those ever-so-tiny steps back toward you. THink about it - he initiated the hug last week, the good night kiss last night - what could be next?
Now you initiate some things for the two of you. The trip would be a biggie. How about setting up your bedroom with some new candles, a romantic or raunchy DVD (hey you never know - LOL!) and a cool beverage, some strawberries and chocolate....
(I might have to do that too - come to think of it!)
Hang in there girlfriend - you are awesome!
totite
"Accentuate the positive, eliminate the negative..."