Patti
its really sad about your Bailey, you are doing your best, that comes across strongly. . yet the kids come first.
I sympathise and hope you find a solution soon, I had a Jack Russell years ago who began biting me, my brother has a large scar on his hand still from when he stepped between me and the dog. He was born to my parents ever so friendly bitch and our neighbours JR who was alovely old fellow.My brother to this day is scared of dogs even as an adult which is such a shame . Point I'm making is that some dogs are just crochety/crabby/however you want to describe it. Its such a shame the children can't enjoy their dog.
Whatever you do. .and it is your families decision; I wish you the very best with.
Vanessa x