I'm sure it is and i'm sorry to hear all that has transpired. This is going to sound completely counter-intuitive but what you can do to help yourself and your children is to focus on you and them. Taking care of you and them. Your wife's alcoholism should not be the center of your world, otherwise you end up as you are feeling now.
How? How can you put it aside? Well, she won't quit drinking until she has decided to. No amount of love or understanding or support will "make" her stop. Yes she needs help but that doesn't mean she wants that help right now. You do have a problem with her drinking, she may not.
Now, you still have the dilemma, however that's where boundaries enter. What are your boundaries with this? If your boundary is that you can't have a person drinking in the house, should she be looking for her own place for now? Boundaries are for you.. You don't need to share them because they are yours. If your boundary is as above, then you need to decide what the repercussions are for someone crossing that boundary.
In this instance it might be wise to share it with her if that is the case, so she knows what to expect. The beauty of boundaries is that they are not "rules" for others to follow, they are yours alone and you control them. If you decide that she can't stay around the children if she continues to drink then either she or you and the kids will need to go elsewhere. These are things in your control and do not require her to change her behaviour if she doesn't want to, since you didn't Cause it, can't Control it and can't Cure it (the 3 c's).