My answer is Yes. I know about 3 relationships that were sexless between 2 loving partners, due to one partner`s homosexuality.
Yes, it can work. If both people feel truly loved, and appreciated. If both people are logical, and understand the need for intimacy.
If you`re only concern, is the fact you don`t have time right now, that is a ok concern to have. At some point, you will have time. Do what feels right then. You don`t have to run out and bang someone, just because your wife gave you freedom to do so. Go at your own pace.
I think you need to know its ok to be in a different living arrangement. It`s ok,as long as you still feel loved, appreciated, and not used. Take things one day at a time. Maybe you are ok today, maybe you are ok 6 months from now. Maybe 2 years from now you decide you need something more.
Deal with that then. One day at a time.