Yes, we did. We used to both work full-time, and while I brought in a big portion of our income, in the end we figured we were losing money and I was probably working for nothing. Our oldest did horrible in daycare. He was always sick with ear infection after ear infection, and worse. He would tantrum so bad from the time we'd leave the house, til I dropped him off. I hated it, and felt bad because he seemed so miserable. But DH and I both thought the extra check was really necessary.
In the beginning, it was tough making the decision to become a full-time SAHM, but it turned out to be the best thing we did. We had a lot of fears and misconceptions. We thought we were going to be broke, but after reevaluating how we spent our money, we found we can make it on the one salary, and still have enough to raise our kids. Granted we're not doing as much extra stuff, we are getting what we need, when we need it.
The big thing is health insurance. Luckily, my hubby has good insurance through his employer. That helps alot. We also made a concerted effort to pay down debts, and eliminate alot of extras like cable, eating out, etc.
Bottom line, some kids don't do good in a setting like that when they're little. Unfortunately, there is a lot of pressure out there that preschool and daycare is really important for socialization etc. I think it goes both ways. Kids learn at home too and developed/learned just fine long before daycares franchised. You know your kids best. You know your family best. You gotta do what's in the best interest of both. Whatever you decide, don't beat yourself up, or let yourself get overwhelmed. It will all work out in the end.
Good luck in what you decide. I know my children are happier. ANd we as a family get to spend much more quality time together. And yes, we don't get sick anywhere near as much as before. That in itself is a wonderful thing.