My kids have supervised visits with their dad at my inlaws every other weekend. I preferred them seeing him in a familiar and comfortable setting over a court appointed situation. It is not without some issues...but I doubt any supervised situation is without issues. It stinks any way you look at it. I want my kids comfortable, period, so that is what I decided, and the inlaws were willing. For now, this is where we are.
You sound like you are making some good decisions. It is so hard, but necessary. Take care.