Hi grandpalw,
My wife and I will never let her parents and siblings be alone with our kids. But that's because they harbor, defend, and refuse to see the danger inherent in, child sex abusers. Some of them are sex abusers themselves.
It pains us that our kids don't have grandparents who aren't dangerous to our peace and safety. Tell you what, you can come visit ours in Colorado, and you and the 5 yr old can have as many short-tempered shouting matches as you want.
I have no idea what's going on with your daughter, though. Maybe she just really does want peace and quiet. If that's true, it doesn't matter one whit how many callings you've held, how devout you are in church service, or how many distinguished guests you've had in your home. She ain't gonna expose her kids to that, and you'd better get used to it, no matter how painful.
By way of advice, please consider knocking off the attempts to get her to change her mind. Just accept that she's the boss, and if she changes her mind, it will be on her terms, not yours. Go visit the kids and be nice. Bring small gifts. Smile and be polite and civil. If a month goes by and it's going well, and she starts relaxing around you, maybe offer to take everyone out for burgers (or whatever enjoyable thing you all can come up with.)
If you find out you just can't for the life of you let it go and be nice and let matters drop, then her side of the story looks pretty good to me. Go fix yourself first, before trying to get her to change. I mean really - how much time should I want to spend with someone that keeps harping about how much pain they're in due to me?
LM