If I were in your place, if it were to happen to me. These should be the sequence of options:-
1 )Try to befriend the in laws. She goods, I'm good, everyone happy. If bribing her can do the jobs, I won't mind spending the cost.
2) If option 1 don't work, second worse scenario. The in-laws do her stuff, don't encroach the boundary. As long as she respect that boundary, that will do.
3) If option 2 don't work, 3rd worse scenario. Vent it out. There is limit on each one can take, instead of complain direct to your husband, just get into direct fight with the in laws, if need to shout just shout. If she don't want to see this scene, ask her to better behave, if not, you just need to make sure you is the devil that she will regret to provoke. The eldest DIL is bad, send 1 signal that 2nd DIL is worse if she continue to be kwai lan.
4) Look for the old folks home, sign her up. Call the eldest son, each family to share the expenses.
This world, people fear the ruthless & bully the kind ppl.
If possible, there is no need to go till option 3) & 4). The best case scenario is 1).