401k loan and over-saving for retirement?

This is a two for one question: first, your opinions on a 401k loan based on our situation. Second, do you think we're over-saving for retirement?

Here's the situation. I've been maxing out my 401k contributions at 12% since age 21. I've recently changed jobs (first job change) and at age 30, both my husband and I are eligible for pensions. My employer offers a 401k as well into which I'm investing 10% with a match of 100% up to 6.5%.

I estimate our combined pension benefit at age 65 (35 years from now) to be approximately $80k per year and the 401k balance to be well above $2m by retirement.

Today we are in need of cash to pay off high interest credit card debts that we're drowning under. We've changed our spending habits drastically, to the point of moving to a lower cost of living state, and now need to eliminate the debts.

I've looked high and low for alternatives, but it seems that a 401k loan is our only option to access enough cash to get these debts off our plate once and for all. So in your opinion, is the loan a sensible option in this situation and do you believe we're over saving for retirement by stashing 10% with plans to increase to 12 over the next year on top of pensions?