As my youngest are about to start college and we just moved and downsized our home and our bills....I would keep our house as is. I would not want to do much different at all. Just would be nice to be set for DH to retire at a nice comfortable age. But I wouldn't run out and spend lavishly. We are driving two older cars with 110k+ miles and twin DDs, who are about to go to college, do not have cars so maybe we'd make some changes there but nothing crazy. Maybe trade in the two old cars for two modest new Toyotas or Hondas...then in a year, when DDs can have a car on campus, we'd give them one and add another new one for ourselves. Would pay off DS's car too. Set aside enough for college costs and then invest rest. And when kids finish college we would maybe buy beach vacation condo. We are also DVC, currently, and would continue our two annual trips.
We play lotto often and I always tell DH I would rather win a $1-2 million prize than a big $200 million prize. I prefer a low key simple life....well, an American standard simple life which is lavish to other countries. I just don't want the problems and headaches that come with having a ridiculous amount of money. Nor do I appreciate fine things.