Hi Danette,
You raise some very good points and I'm overjoyed that your wife is supporting you.
I'm not too sure what the middle path is. I know there are many MtF who decide not to have surgery to construct a vagina, some have an orchie and no reconstruction, some have neither. There are many factors.
Age, health, finances, relationships are all important. You may find your wife is OK with you presenting as a woman but being castrated and rebuilt may be too much. Again this can be an age thing. Younger couples may have more problems in this than older.
I decided that I would openly present as me. It took some time. I joined Sue's in late 2008 as a scared little rat.
I'm now out full time and never been happier. This from a person who was so terrified to get her ears pierced in case she got fired and who now walks around and presents totally female in the same job I have had for 30 yrs.
No stealth for me

So I think you really need to keep your plan fluid. Things do change and as you become comfortable with one aspect of life others open up.
I remember the first time I went out in public and actually went to a hotel. I was so scared. I don't even think about it know. The liberation was so great that after a few outings there was no way I could go back.
This is a blessing and a danger.
At some point there is no going back. Once a person knows about you it is over. Once you have revealed yourself to friends, colleagues whatever. It is over. There is no going back. You may not want to, I certainly have had no regrets; except for not coming out sooner.
I also have no great problem with coexistence, as I came out Cindy very, very quickly became the dominant person in my make-up. I have never felt a dual personality. Once I 'allowed' Cindy out she was there and ready and happy and everything that P never was.
The effect on people who knew me was stunning. They saw and commented on a personality change that stunned them. I went from moody to happy, even before I started to present as Cindy. Just from accepting me.
P had real difficulties in being popular and having friends. For whatever reason Cindy is outgoing and popular and has no problems in talking to people and enjoying herself. P was a miserable little sod who jumped at shadows and didn't have a friend in the world.
So I suddenly had a social life. I'm invited to dinner parties, I'm asked out for drinks, I'm asked out to see a movie. It is wonderful!
But I had to get used to it.
Again there are dangers here for your family relationship. Can your spouse take changes in you? You need to think these things through. Discussion is of course totally important, but if you can get your spouse to attend therapy sessions with you that may also help.
You do need a therapist. In Australia they are all Psychiatrists, they assess if we have any underlying mental problems and deal with them as needed.
A good therapist is gold.
Here, my therapist specialises in sexual 'problems' so he is very experienced. We have a marvellous relationship, and to be honest I think we both enjoy our sessions as we have a lot of laughs.
So you need to have a think about where you want to go. But as I said keep it fluid, life changes; don't we know it

Is sixty too old to face all of this?
I'm 60 on the 1st Jan 2013.
BTW I talk to lots of people about all sorts.
I'm always here for you, and your spouse, as well.
Hugs Danette
Cindy