No, it's not crazy to want to work things out with a cheating spouse. However, the cheating spouse's actions don't indicate he is on the same page with you.
In order to have a healthy marriage, there must be trust. Will you ever have complete trust again? It's going to be up to your husband to restore that trust. That's where your problem is. He is a repeat cheater and he won't live a transparent life. I just don't see that problem getting fixed. That part of the equation is completely out of your hands.
Wishing you and the children well though.