Choice # 2 is generally what I did. Although I didn't fade- just stopped attending cold turkey over 8 years ago. Some of my JW family shuns me, but not all of them. I agree with JW Facts- a person needs to hold to their integrity in spite of it hurting emotionally, because it will hurt you in a more pronounced longer way psychologically if you go AGAINST your integrity as your whole rest of your life will be a fake representation of what you really believe within - that the WT society is a dangerous mind control cult.
The optimum thing for you is if your wife exits eventually. How is that coming right now ? Is she doubting the organization ? Or attending less meetings ? It would be great for your children if both of you stop . Then your children will be raised to think freely with open minds. Hang in there buddy. I know it's a tough challenge . But remember being true to oneself is much more fulfilling than being true to an organization who doesn't care if you exist or not. You're just a field service statistic reporting time to the WT society