Little frustrates me more than when someone comments to me, "I wish I
could afford travel like you do". Generally, its not a tone, like, I
admire your travel, usually its more bitter
Or it's someone who's 40 or 50 years younger than we are! We've saved $ for years, my car is 16 years old (and was cheap when we bought it.) We ask for gift cards to nice restaurants for Christmas gifts. We don't have cable, share internet with a neighbor, and have spent years traveling in the States, sleeping in a tent and staying in state and national parks. (Which we love to do - I'm not complaining!)
So yes, now we can relax a bit and spend some of the money we've been saving. I will say that it's still hard for me to let go of some of our frugal ways, but hey, practice, practice, practice!
My own preference would be the same as Lo's: downsize and spend half our time (at least) traveling. There are a couple of impediments to that: we haven't learned yet how to get rid of stuff - and we have a lot of it.
In addition, I have elderly parents whom I am reluctant to leave for long. My dad (91) still lives at home, and my mother (89) is in a nursing home. I see them every day, and help with medical and other issues. My DH and I figure 3 to 4 weeks is about as long as we can be away, and honestly, I think that's pushing the limits. But Dad is in good health, and my aunt and my brother's wife step up to help when I'm gone.
So not a bad compromise: a longish trip once a year. That leaves lots of time for planning and dreaming. It works for us.