Generaly I'd say you are on the right track here. I think it would be greatly improved two ways: it is badly underexposed, needs to be brightened up. Second the crop is too tight across your wife's forehead. Is there room there in the original, to recrop it? I would guess you could fairly easily reshoot if the original is not fixable. Another thing might be to try to include more of the baby's face in a reshoot. I bet you could have loads of fun with posing and lighting them in a re-shoot.
Hope this helps...JSD