Why in the world would that fuck them up?
Because they will see that mom and dad have and can provide everything they need with no effort on making money. They were not alive or aware of the wealth accumulation phase. This may warp their view of reality.
It won't fuck them up nearly as much as the kids watching their parents slave away at horrible jobs they hate, spending to fill the void, while they get more and more miserable, neglect their health and their marriage, and then end up bitter and fighting in the divorce over the possessions that never really mattered in the first place, while each parent pressures their kids to become doctors and lawyers even if they don't want to be.
There are worse things to have than financially responsible parents who are available and present and willing to talk about personal finance and the trade offs it takes to earn the kind of freedom that you did.
Also, you can't predict the lessons kids will learn from your example, that's not the way parenting works. If being retired will make you a better parent, do that. Otherwise, don't overthink it.
As for what you will do with your time, well, I retired a few months ago and it's awesome. I actually feel like I don't have enough time to do everything I want to do, and I'm having to start paring down the projects I take on because it's so easy to feel like you have all the time in the world, but you really don't. If you can't see all of the amazing things life has to offer, then it sounds like you've spent way too much of your time and energy working, and should probably get on with doing something about that ;)