Fifi - You made it very clear in your post that you were only talking about withdrawing from discipline issues, so it was my fail if it came across that I thought you were withdrawing full stop.
I guess my post came across like that because I think discipline, though I tend to err towards the more neutral term, teaching, forms such a big part f our relationship, as parents, with children. The edges of imparting wisdom (!!) and discipline/teaching are very blurry.
I guess you and your dh have decided to try a new approach. Maybe it'll work, maybe it won't. But maybe the way to look at it all is as a kind of experiment, trying different things out, until you all hit on a way that helps you all roll on, happily, as a family.
Sorry to hear things are tough at the moment. Two years, with all of you jumbling together, isn't that long. I hope that the rocky patch is really just a bit of rough water, requiring some innovative navigation, and showing you different ways to pull together as a team. Difficult situations/patches don't always signal the end of everything, and that you've all made a terrible mistake. It can just be bad weather, and a testing time.
Good luck.