He is probably treating his kids the way he was treated by his own father. It's sometimes hard to undo what our parents have done to us, and your children could possibly follow in your husbands footsteps if he doesn't change. However, it's not impossible to change and he will need your help.
Unless he has an epiphany, you may be the only person he will listen so he can begin to change. Start by praising him for anything nice he does with, or for, the kids. Praise him for any kind word he says to them. Tell him he is a good daddy. Do all you can to spend time with him, making him feel like a man and that you and the kids love him.
A man that treats his kids that way doesn't feel good about himself. He unwittingly projects that onto the kids. The kids don't deserve being treated that way because they are little kids and it's natural for them to want to play and have fun. They will only be kids once, and unfortunatly he can't see that.
However, your husbands issues will make it difficult to ever have true harmony in your household. So unless you plan on leaving, I would do all in my power to help him feel good about himself.
For now that may seem like an impossible task, but short of him getting some kind of therapy to uncover and deal with his misplaced emotions, you will need to be the one to help him through this.
If you vowed to stay with him in sickness and in health, then help him through this sickness. Making impossible demands on little kids, and making everyone miserable day in and day out, is a form of sickness. When/if he is healed, the family can be well. Good luck.