...For Now...
Hansel,
For you, this is the right decision for the season of life you're in. It's not an easy thing to do and not many men tell flying to take a back seat to the needs of their family. I think you got it right. When you're pushing 40+ with a family, that's not the time to try to make it on 25K a year. Some guys can and do succeed, for sure, but what was the price paid in terms of things that can't easily be measured?
Plus, you would never get those lost years back with your kids, but flying for pay (or just fun) in some way will probably always be there. Yeah, you won't make it to the majors but you're making a tremendous investment in the lives of your wife and kids. Priceless.
I made the same decision you did and when my last kid starts college in four years, I'll reevaluate my decision.
Here's the deal - I have no problem with being a 50 year old FO, fractional CP, or CFI. So you just kick the can down the road a few years for the right reasons. Who knows what the future holds? Go have fun with your family, keep in touch mentally, and check back when the time is right.