Ok, first of all, if you can, please calm down. Don't say things like you don't deserve your wife. You know why you married her and man, fight for her! Don't just give up. I mean, in life a lot of problems can occur and it is not the point in quitting, the point is in keep on trying. In what ever you want in life.
How would your wife feel now if she knows that that idea crossed your mind...maybe sad...
So, stay strong and don't loose a lot of time. React fast and get correct information about what to do.
That application is something that is expensive, it hit your pocket and your nerves.
You know, it meant a lot to me when my husband stayed strong for me (even if he pretended then, i needed it).
So, calm down, think of what you will do, do it, don't loose time and if it was me I would talk with my spouse. mean, that is your partner in life, and she deserves to know the truth about application that carries her name on it. Conversation and love could be solution for your fears about her. Tell her that you love her and that you will do anything to have her beside you. Ask her for patience and let her know that you are also worried but you need to ask to get answers.
And who knows, Immigration may find your application until then. I mean man oh man, you guys paid for it and have proof that Immigration received it. Don't let it go. That is not an appeal on Immigraton decision, that is an appeal on their lack of organization. They lost my open work permit as well ( I know that it is nothing comparing to your application) but still, I know that they can loose things.
Maybe you should ask someone who knows something about it, what happens with your wives status until this gets resolved and pay attention that her temporary status in Canada is always valid,
I am really sorry that you are going through this, but dont give up, it was not your fault!