YABU - your kids, your responsibility - someone pages ago said they're nearly teenagers...10 is not nearly a teenage IMO. Your kids, your family holiday so be together - they may well sit with the ipod on all the time, so what. Do you not want to be with them anyway? I can't figure why you'd want to be apart - screaming baby/toddler bouncing around is one thing but older children.....sit, chat, general conversation....why not??
I think you're husband is being an idiot and a complete wet lettuce - poor me I need my sleep......blah blah - man up for heavens sake! He sounds like a prize catch!!
And what if you're kids are sat next to some idiot, drunk, perv??? I would not be happy having my kids away from me.
If you can't afford the kind of holiday you want/have always had, then wait a year, or pick a different destination - that's what most families do, regardless of the budget they have.
Flying unassisted is a totally different situation. Would love to get Cabin Crew/Pilots persective on what its like when the parents are supping the booze, chilling out on the bed in Business Class while the kids are elsewhere.....