Wow!
What don't you understand about her having decided to stay?
He's very insecure.
I have stayed in a similar situation for 63 years, but recently things have mellowed and we've finally found contentment.
I 'divorced' him in my mind, but stayed with him as his employee. I regarded myself as his live-in housekeeper/nanny. I treated him as my employer and set myself a timetable of working for him (you will need to filter in your working hours at your job). I also imagined what I would earn from him, less board and lodging, and jotted it down - it kept me amused for months until I got bored with it.
Don't bother with day to day chat about your daughter, don't ask him about his day, you don't need to be nice to him - he obviously thinks he fine as he is, who knows?
If he puts you down in company, look at another female and roll your eyes.
He's not going to change, but its time those egg shells were swept away and you started pleasing yourself, not him -- and this can be done within a marriage as well as out of it. You don't need a divorce to live apart.
No one's mentioned your sleeping or sexual relationship, only you know how important that is to you, but be careful you don't set yourself up for rejection in this area by being needy.
Things like the 'sweety' incident are hard to ignore I'd try to deal with again as though he was your employer, your not very friendly employer, tell her with a smile - "say thank you to Daddy" but later remind her to "pop upstairs and clean your teeth when you've finished". No accusing looks.
It takes years and its not a miracle cure, but it was my way of keeping my self esteem - and I grew to know I was a better person than him.