Wow! This is exactly where I see us heading sadly...but I was talking to my co-worker and she pointed out that if they care so little about us that they are will to cut us off because of a disagreement that we are coming to them in spirit of reconciliation and making things right, then do we really want them around? The answer to that in my book is no- hands down. Will it be sad and will it hurt, sure, but if they care for us that little maybe it will be for the best.
Sadly, they are never going to accept me, and I am OK with that. But they forget that Faith (DD) is 1/2 me. So whether they like it or not, if they want her in their lives, they are stuck with me. I am fine with this, it is easier to let go then to go through the repeated hurt - KWIM?
For example at Christmas DH got an Ipod with speakers, several shirts and a gift card. DD got tons of toys and clothes. I got a sweater (that did not fit). I mean, it is so blatent!! If they think that Faith has not caught on, they are mistaken. She knows that Gramme does not like Mommy. Anyways, every Christmas was like this. And everytime we went over there something was said to hurt me. You say you are strong, and you try not to let it hurt, but deep down, it does. Especially when you really have done nothing to deserve it.
As far as daughter-in-laws go, I thought I was pretty awesome. I made her a quilt for her anniversary with pictures of all her boys, their birthdays and other important dates, wedding photos, etc. Hand-cut, hand-quilted...she opened it and said "James' birthday is wrong". I offered to fix it and she said no. We have never seen it since. (BTW - I got DH to review it several times to ensure I had everything correct, he missed the error too, but is it his fault, nope it is all mine).
My point is, not having them around is actually better for us. We fight less, I am happier and I am not getting hurt all the time. I also do not have to worry about what they are saying to DD about me and my family. Yeah, it is hard, but it really was their choice. If they phoned us tomorrow and said they wanted to reconcile, we would (with some conditions). But, I kind of hope they don't - KWIM?
I really wish you good luck. Your situation sucks!! But sadly, it is in your DHs hands as to what you are going to do.

for you!! I know this is putting a terrible strain on your marriage!!
Oh, and I just have to tell you what the final straw was - it is kind of funny!!
At the end of last year, MIL was looking after DD. I came to pick DD up and they were in the backyard. I called out and no one heard, so I just went in the yard. MIL's stupid dog, a bichon-****zu (sp??) came at me and bit me, tore my jeans and drew blood. I tried to remain clam but I was pissed!! I left, and called the Health Line to make sure I did not need shots. I did have to go in just in case but, thankfully did not need the shots.
Anyhoo, DH calls his dad to talk about this saying Shasta is a bad dog and he is concerned about her being around the children (keep in mind while at the hospital they tried to get us to report the dog to the SPCA, but we refused thinking MIL and FIL would deal with it appropriately). Well, FIL threw us for a loop when he said that the dog "alledgedly" bit me and that no one was actually there to see it.

Are you kidding?!?!?! The dog drew blood and tore my jeans!! Why would I lie about that??
FIL and MIL decided it was an attempt for me to take Faith away from them once and for all. DH was actually laughing thinking they were kidding - but they weren't. We took photos of my jeans and the bite, but nope - they said I jabbed myself with a pen and tore my jeans myself. Huh?? I did this on the off chance that the dog would come at me so I could blame the dog??
So, MIL and FIL said that Faith and DH were welcome at their house, but until I admitted I lied, I am not welcome. That was it. Like I said fine by me.