Switching goal to .5 loss per week?

I am 29, female, 5'3, with a "lightly active" lifestyle, and a goal of losing 1lb per week. 3 months ago I was 150 lbs, and MFP gave me a calorie goal of 1360. It worked out great! I lost 10 lbs in the first 2 months, but then the 3rd month my weight lost started to slow down. I realized it was because I had never let MFP update my calorie goals. One week ago I did it, and my goal was switched to 1280. I have been really struggling with this. I feel hungry all the time! Every night I go to bed hungry, and I wake up feeling weak and nauseous. I expected the weight to start melting off again since I feel so miserable, but it actually hasn't. I am not even sure if I have lost a whole pound yet.

I am only 7 lbs away from my goal weight (130) and I feel like a complete failure because I don't know if I can do this for another two months. I am considering switching my weight loss goal to .5 lbs per week just so I can eat some more and stop feeling weak and hungry all the time. Has anyone had this problem before?

Oh, and I know I could eat more if I exercise more, but it's really hard for me to do more right now. I am a SAHM to two young children. They keep me busy and on my feet all day, but they don't really allow me to do any formal exercise. I can't afford a gym membership plus child care. I try to work out at home with DVDs but my kids never cooperate for more than 10 minutes.

So...does it make me a failure if I switch to .5lbs per week? Do I need to stick with 1280 so I can lose?