Love gets buried under a lot of resentment, anger, distrust, hurt and betrayal. It will take an outside party to help him/you peel back those layers to find the love again. I believe you two can resurrect your love and marriage, but it will take concerted effort on both your parts and it doesn't sound like either of you are willing to turn to outside help. He has to want to make the marriage work.
At this point in time, he sounds like he is on the brink of ending things but doesn't want to be the one to make the move. That is the reason for his short fuse on small matters.
Your children will need counseling to get through this. They are taking on the responsibility for your marital problems and that is unfair. By observing you and your husband, they are learning about adult relationships. Teach them that you can love a person without loving--or accepting--their behavior. Teach them to love themselves enough not to let a dysfunctional person suck the life out of them.
It doesn't sound like your husband respects you or loves you. It does sound like he has his own issues he is not willing to address and sooner or later, he will spiral downward further and take you down with him.
When you board an airplane, the first safety tip is to put on your own air mask to breathe before you rush to help another person don the mask. If you don't, you'll pass out and can't help anyone else. A mother's instinct is to save her child but you must be able to breathe first! Take care of yourself now. Don't wait for him to make a move or to change. It may never happen or take so long that you'll stop breathing in the meantime.
Albert Einstein says, "Insanity is doing the same thing over and over again and expecting different results."
Be sane.