I can't help but think that, if the alcoholic in you life is affecting you, then that means his behavior is out of whack, and if he's behavior is out of whack, then yes, it is affecting the children in the household.
I wouldn't say that you're sugar-coating your husband, but based on your original post, it doesn't indicate the crazy-making, the lack of a high level of responsibility, and the lack of good communication that is typical in a alcoholic home. But I would guess that those things are true in yours.
If what I'm guessing is correct, then of course your children are affected negatively. And if it's not correct, then why are you in turmoil at all? Just what I think based on my years of knowing and being with them. It is dysfunction, plain and simple.
Peace to you in your decision.