She looks great for any age.

Yes. Hard to credit it!
"Your mother puts license plates in your underwear? How do you sit?!"

Is your wife around your children's ages? And if you don't mind me asking, is it awkward that her peers are with your kids?

I think it's "automatic" for everyone to flinch at the thought of 20+ years difference and my wife and I see a lot of those knee-jerk reactions. That being said, the generational differences you speak of are actually one of the things that keep it fresh with us. She loves discovering new music and films that I find for her and I have no problem trying to keep up with the times, so to speak. And yes, I do know who the Teenage Mutant Ninja Turtles were, even before I met my wife. I learned about them from my kids from a previous marriage, who are now 29 and 24. I know, lol!
The only issue I feel we have, but my wife insists we don't is that I know, deep down, she wishes she had kids of her own but we haven't had that opportunity. We don't use birth control but it's not like we're actively trying either. I worry that if she does get pregnant that she could end up being a single mother if something happened to me. But that isn't much different than couple who have kids then get divorced. I could see how a teen having a father in his 70's might be an issue for the kid. But that's the only real issue that we feel the age difference causes, and as you can infer, it's not a very big issue for us.
"I think that boy's cheese slid off his cracker" The Green Mile

LOL, look, such generational differences were commonplace in the past, but much less so these days. And as a result, Hollywood matches young men with young women, but old men with young women.
While I won't argue in favor of idiot feminism, it is kind of ridiculous how Hollywood will pair a 65yo with a 30yo, even when an attraction doesn't particularly make sense for the characters or the situation. This creates problems for actresses because, as a result, the number of roles for older women in the 40-70 range is about 6 (total) in any given year. And Meryl Streep gets three of them.
And age difference DOES often matter if there is 20+ years of age difference, then you're going to have to constantly be explaining your references. And she's going to have to explain at least a fair number of hers if I mention "Raphael, Donatello, Michaelangelo, and Leonardo", what comes to mind? If you were born in the 50s, it's most likely going to be quite a bit different than if you were born in the 80s. If you were born in the 50s and you mention someone singing like Frankie Valli, she's gonna go "Who?".
If people work together, that's fine. But there are certainly distinct chances of "issues".
She asked me out for 6 months before I said yes because I didn't think she would want to be with someone that much older.
LOL, so you were agreeing with me all along?

"typical Hollywood generational mismatch"
I'm not familiar with that "typical" Hollywood" whatever. So there's some Hollywood gimmick they rely on time and time again? And why would that be a good thing, or bad for that matter?
Also, why would it be "unreasonable" if there was more of an age difference?
For the record, my wife is 23 years younger than and we've been together for 17 years, married for 11. We get along better than any 2 people I have ever known. We are now, and have always been best friends. And before you jump to another stereotype conclusion, she chased me. She asked me out for 6 months before I said yes because I didn't think she would want to be with someone that much older. I looked young for my age, she thought I was 10 years younger than I was. But from our 1st date, we've been madly in love with each other.
Reasonable is just what people who jump to conclusions regard as acceptable. Don't judge a book by it's cover. That's the basis for all prejudice.
"I think that boy's cheese slid off his cracker" The Green Mile