What I am noticing about myself is that lack of sex=lack of self worth and lack of self confidence for me. Like my whole value is tied to that.
Great observation. You'll want to sort this out to see why this is true for you. Some things to think through include...
1. That you've picked up the insidious lie that many betrayed spouses face after Dday -- that the A is a commentary on your value/self-worth
2. That you feel desired through sex and, therefore, that you are deriving part of your self-worth through others in general -- your wife for while you've been married, but others before her.
3. That sex is part of the entire marriage relationship and communicates a depth of love and respect to you. The chance in frequency and/or level of intimacy is missed by you. However, it is starting to feed in to #1.
4. That you are comparing yourself and your value to the AP. Underlying this is the thought that the AP might be better. Contributing to this line of thinking could be your WW's IC's advice to take 2 months to choose who she wants.
5. That your WW is manipulating you. Through telling you that she wanted a couple months to figure out who to choose (the AP or you), then telling you that she wants "us" (e.g. to move back home and have full access to the kids) and then indicating that she isn't ready for intimacy makes it very clear that she is controlling the situation. In the meantime, you feel like you are walking on eggshells -- in other words, you are doing the "Pick Me! dance".
This isn't an expert or exhaustive list by any means, but something for you to consider and/or talk through with your own IC.
From what you've written here and in other posts, I'm concerned that you might be focused on #2 right now. That might be a good thing to sort out and give you insight into what is holding you in the marriage. However, from the outside, it certainly seems like 1, 4 and 5 are definitely in play and that is a much bigger issue. Your wife is continuing to be self-centered, manipulative and controlling which is only further undermining your self-worth and confidence. It appears that you are trying to reconcile alone.
I'd advise taking a wider view of things. The lack of sex from your wife is lowering your self-worth and confidence because it is one of many things your wife is doing that shows a lack of love and respect. Her tactics of manipulation and control are abusive and it is disorienting. Her withholding sex gives her the power in your relationship -- the hopes of reconnecting got her back in the door and now withholding it gives her the ability to dictate what she wants you to do. She stabbed you in the back and now is making you feel like you deserved it, that it was your fault and that you need to do what she wants in order to avoid her doing it again. It's absolute emotional abuse and blackmail. I'd highly recommend doing the 180 (http://www.survivinginfidelity.com/faq_bs.asp#FAQ11) for your own benefit -- simply to disconnect from the manipulation/control, to get enough space to gain some perspective on what your wife is doing and to rediscover that you have worth and value.