To understand better, let's look instead at simpler sentences that display the same structure:
"It is fun to swim."
"It is fun swimming."
Present participles and infinitives both can function as nouns. In these sentences, "to swim" and "swimming" are both nouns and serve the exact same grammatical role in both. The only difference is that they feel different. Infinitives feel factual, whereas present participles feel descriptive.
These nouns, "to swim" and "swimming", specify the meaning of "it". Really, "it" is superfluous in these sentences. The sentences are better without that word:
"To swim is fun."
"Swimming is fun."
Likewise, your sentence is better without "it":
"Not having to drop off and pick up my kids every day from separate day cares is great."