Fidelity isn't a bad choice - many here are Vanguard fans (I certainly am), but I'm not going to panic and tell you to pick a different place the way I would if you were with, say, Edward Jones.
Assuming you and your wife are planning to stay together for a while, don't think of each retirement account - your 401(k), your IRA, her IRA - as a separate thing; reasonable people (here and on other forums) disagree as to whether or not the tax-advantaged and taxable accounts should be treated differently.
In short, use your IRA and her IRA to make up for shortfalls in your 401(k), or to take advantage of great choices in said 401(k). For example, if your employer plan offers a great domestic stock fund (such as a Vanguard institutional index) and mediocre choices elsewhere, you could fill your 401(k) with domestic stocks (up to your desired asset allocation) and use your IRAs for international stock and bonds.
So... what are the good (or least bad) parts of your 401(k) and what is your desired asset allocation within the tax advantaged accounts?