Sounds like you and your MIL are poles apart, sometimes, no matter how you try the differences are just too great. It was strong of you to say nothing when she offended you, and I have done the same many times in my life. It was good to journal your feelings and vent here, where you can get support and know you are not alone. Keeping stuff bottled up inside is a recipe for disaster, the stress really affects your physical and mental health....so vent away...to us...she wouldn't even "get it" if you said it to her.
Continue on building your stock of beautiful quilts...it will keep you going and hopefully result in some good sales to help secure your future independent of your in-laws.