I don't believe that anyone here can offer a solution to your dilemma as it is only you that will truly know your heart. Your children will be fine, of course - as all children tend to be when presented with a new situation. Your own ability to enjoy life here might be tied up in your statement of being "Protestant Christian". Italy is, as you should already know, the centre of the Catholic world. Not knowing how deep your protestant beliefs are, I could not tell you that you will be fine - nor that you will not see any difference, as there is a difference and you will experience a very different style of religious life here. As far as education is concerned, you may be best served by one of the "American Schools" in Italy. Home schooling is not a normal choice here, so there will be many barriers for you in the conventional Italian system. Perhaps you should consider a short holiday in Italy to best decide?

I wish you well with your choice - it won't be easy for you. At least it isn't a decision that will cost you much financially, however - hence my concentration on the religious needs that you may, or may not have.