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I'd agree with what everybody else says. It is more important to think of your family than your career.
The job you have been offerered maybe less pay but the way to look at it is that you are working closer to home so would it be that much of a letdown in pay? If you are good at your job then the bonus that the new job offers would an incentive.
Nobody is irreplaceable and your current boss is probably only thinking of himself because at the end of the day he would have to do some of your work when you left. that is until you were replaced.
I wouldn't feel bad about leaving this company. Your boss promised you a package and didn't deliver and acted like a child when you told him about the other offer. The drop in salary will be well worth the extra time you will get with your family. You can never replace the time you lose with your kids.
Go for it
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