Is now the right time to go back to work, nightowl? I would give this some serious thought before deciding. You might find that with two small children it is easier to remain as you are just for now. You might need this time to plan for later, and to clear your head, just as plants lie dormant in winter resting and preparing for the time when they will fulfil their potential.
It doesn't sound like going back to your old job will be really fulfilling for you, but don't dismiss the idea. It might be something you can use to get the money/skills/contacts to reach the job you really want. Consider all carefully.
Devote a little time each day to thinking about what you used to dream of acheiving before life took over. When I was in your position I realised after a long time that as a child I used to enjoy writing poetry and stories. I had half-heartedly resumed classes as an adult but when I split with my ex I was so busy keeping the wolves from the door and trying not to go insane that it all got forgotten. I resuscitated that dream. I recontacted my old tutor and went back to classes. I have been back at classes for seven years now, with a short break for having a baby, and now have a large portfolio of poetry and stories and have begun writing a novel. This is important to me. I may never publish a thing but even if I don't, the writing of it is cathartic for me, and helps me access myself in a way that nothing else can. My dh and children do not share my enthusiasm for words. So I find that meeting my (by now) dear friends at class I have a forum for my great pleasure in poetry and literature.
What is your thing? Perhaps words, like me. Or painting? Making things? Figurework? Designing? Music? Food?
Find out what is in your spirit and make room for it in your life. Through this you can heal a lot of damage and clear the way to knowing what you want and don't want in your life.
Did you ever find an answer to the problem of your friend and your neighbour who take up too much of your time? That is a prime example of something that needs to change in your life. You need to declutter in terms of time as well as space, to make room for something new.