I'm glad you & your MIL came to the decision to give her mother a store bought quilt. good idea also to write her name on it really big.
I want to comment on your MIL's behavior. It sounds a lot like my mother's, who I finally learned had dementia. My DH was a saint; I was working nights at the time and he would go over to see about her (my dad was still living and took the opportunity to grab a quick nap). We both did the best we could for both my parents and neither of us have any regrets. I do believe my younger brother does; he gave a little money for a maid but wouldn't give her the company she craved. Sorry about the book. I just want you to know I understand how difficult it is to deal with someone.