How should I handle my wife babying our kids too much?

Truthfully, it sounds like you guys have a good balance going as parents. She can be the nurturer and you can be the encourager. You balance each other out. Don't worry about the kids... They'll figure it out. They grow up and become independent even when you don't want them to. As long as you give them a good foundation, they'll be fine out there in the big world. My mom took care of us as kids - she cooked and cleaned and shopped - but when I moved away from home at 18, I learned to take care of myself. Practical skills will come, the main thing is to teach them to think.