Why would someone invest $200,000 into two kids' college education? Assuming they are young kids and the money has time to grow, those 529s are going to be worth more than one M.D. and/or J.D. and/or Ph.D.
This game is easy for me. Just did a quick tabulation if Hubby and I suddenly had $1MM net:
Pay off the Student Loans ($115k)
Pay off the House ($165k)
Hubby and I quit our jobs
Sell one car
Live on 4% withdrawals (~$28.8k/year) or less
A quick calculation, this is more than enough for food, utilities, real estate taxes, home owners' insurance... and even those at high estimates it leaves several hundred extra dollars a month. And we have high RE Tax.
If I really really really miss my mortgage deduction, I'll just donate some money to charity because it's the same damned thing. And anyways, I probably won't need to itemize deductions anymore... We'd just be a broke family living on "only" $30,000/year.