I can't believe that it is nearly a year since I was making plans to come over and visit. I had a really nice time out there on the West coast. I think of you everytime I get into my car (I still have the key ring!) and when I go to bed at night. One of the last things I do is take out my earrings and put them in the little music/trinket box I bought on our last day out.
For an update on my sitch. check out Snodderly's thread over on MLC. Nothing new, still in limbo land.
I read your last update and am sorry that things are not progressing any faster for you either. As to your H wanting you to D him that is a real possibility. It means he doesn't have to make a decision and he can blame you for what is happening to them. On the other side, the length of time this has been going on without any movement in the direction of the D, shows that it is not what he really wants. If it was he would have made it happen by now.
I would like to suggest a modification to your plans A/B/C.
Get a job. Don't bother getting a place of own just yet. Get out more. Use H as baby sitter. Build a life for you and the kids without H.
When you have re-established your life without H in it, then consider the D option. By that stage, if you have done all the above, it will really be just a piece of paper.
In the meantime, let H win all the skirmishes and battles. Remember you are going to win the war.