Hi there,
Please read through some of my old posts here on this board. I've posted extensively on my experience with HPV and dysplasia, which happened to be the same diagnosis as your wife. But just to recap:
I was diagnosed with high risk HPV a year and a half ago due to my many abnormal pap smears. I had 2 biopsies in 2 years and both came back benign. However, last May my third biopsy came back as CIN I-II and I was utterly crushed.
The gynecologist I saw told me I needed to get a LEEP and ASAP! Scared about the fertility complications a LEEP may cause (though rarely, it's still possible), I told the doctor I wanted to get another biopsy done in 5 months' time. She told me I was going against her medical expertise and told me that I'd probably get worse in that amount of time.
I went to speak to my best friend's mom, who's been a gyno for years. She told me my other doctor was being too aggressive and that I didn't need a LEEP right away. She also said that CIN I-II doesn't always progress to cancer and even if it does, it takes up to 10 years for that to happen. So I was happy that her medical advice told it was safe to wait and watch.
In the meantime, I embarked on an intense naturopathic health regimen to boost my immune system. I took supplements and used vaginal suppositories for 3 months. My biopsy last month came back normal! I was completely relieved and so happy.
I guess the good news about your wife's situation is that her dysplasia hasn't progressed. You should talk to various doctors to get their opinions-- but she may be able to repeat another biopsy in a few months. In the meantime, she really needs to improve her health and boost her immune system -- try searching these boards for health tips that specifically help with dysplasia. Good luck! I hope my case will give your wife some hope.

All women are different, of course, but if she's young and healthy, like I am, then she has a good chance of suppressing this HPV and hopefully making the dysplasia regress. I too was scared about what a LEEP would do to my chances of having kids, as I'd like to start having babies in the next 5 years or so. But remember that LEEPs usually don't cause any fertility problems so even if she has to get it done, chances are you'll be able to have babies without problems. Let us know how it all turns out for you.