My husband and I have been together for 10 years and married for 7. We have two awesome kids (2 and 3)and my husband's mother has never met them. She is very hateful towards me and my husband and has never liked me (and like you I never did anything outlandish to deserve her hatred). My husband and I are totally fine with the fact that she is not a part of our life, and our kids life. I would not want my children to see or hear negative comments or actions, so I think it's better that they don't even know she exists. If she truly wanted to be a part of our our family life, then she would change her behavior (she knows when she's crossing the line). My parents have sort of adopted my husband and my husband is a better man for it. I know it sounds harsh, but again, do you really want your daughter to hear something negative said about you? Do you want her to see you and your husband defending yourselves, or worse being fake and acting like it's no big deal?
I hope this helps. I can't say that we won't talk/see my husband's mother again, but I think it will be a very cold day in h@!!.