Hi filee, just read this whole post and couldn't read and run...I just wanted to give you my support, sounds like you've had a hard conversation with your DH and made a hard choice based on your priorities for you, DCs etc.
It sounds like this has freed up some headspace, so invest the time into whatever you want/need right now...dealing with other aspects of your mental health, physical health, time with the kids, dates with DH without any expectations putting pressure on the evening...
It's early days. As you can see from pp'ers, sometimes sexless is a stepping stone to leaving, sorting out the problem or does become a longer term way of life. But it's early days for you...keep an open mind, revisit it as often as necessary, consider Relate or similar if a third party would help the conversation with your DH.
As for beauty, and your DH's frank opinions on what he loves about you, I would value his honesty but see it for what it is - his opinion. And your view of yourself is just an opinion too. It does not make 'not beautiful in the traditional sense' a fact of your life. Find the small things you do find beautiful, maybe in time ask your DH to find small things he finds beautiful too, and maybe your perception and language and actions towards each other will gradually shift.