J.L.
If you know in your heart it is right, why are you asking us, or care what your in-laws think? You wouldn't have a single doubt, and you wouldn't be worried about what others think if you truly did know in your heart what is the right thing to do.
I think you are hesitating because deep down inside, you still value what the Catholic Church has to offer, but perhaps there are some things about church teaching you don't agree with, or understand and that is *perhaps* making you think the grass is greener on the otherside. Which is easy to do if you don't fully know what you're leaving. Instead of letting those issues fester, tackle them! There is an answer to every question and concern. Learning why may bring healing and spiritual growth. At the very least, you will not know for certain in your heart if you are indeed making thr right choice if you don't explore all avenues fully and make a truly educated decision.
I think some things (especially where spirituality is concerned) can not be explained. There is a mystery as to why we are called to a certain faith in the first place. For whatever reason, at one time, you and your husband were called to be Catholic. Your family is Catholic. And more than likely the Catholic faith has probably been a part of your extended family's tradition and customs as well. Even if your family didn't attend Mass regularly.
Considering your hesitation, and the fact that it sounds like the Catholic faith is an important part of your extended family's culture and history, this might actually be a good time to re-explore the Catholic faith with your child before leaving it altogether for another fatih. Sometimes for whatever reason when we are young we miss the message, or something happens that takes away the experience from us, and we lose our focus and get bored or discouraged. Or perhaps the parish community we belonged to wasn't welcoming. The beauty of the Catholic faith is the fact that it's many parishes and people are diverse. There is a place for everyone, and no one ever stops learning. There are classes and opportunities for spiritual growth for every walk of life if you know where to find it. Maybe you simply need to find a new parish community. One with young families like your own, and a younger pastor who has the energy and resources to motivate young people. Word of mouth in church communities is the best way to find the parishes where all of the young families go. A good guess is one with a parish school, and a parish center thriving with community and faith based programs and resources.
Here is a link to the Archdiocese families and youth page for a start:
http://archkck.imodules.com/s/1020/home.aspx?sid=1020&...
There is a person named Jeff Cavins, who was fallen away, but due to some pretty extraordinary events in his life found his way back to the Roman Catholic faith, and has brought literally thousands of other young fallen-away Catholics back to the faith through his lectures, books, and a school dedicated to Catechesis for lay adults not entering the seminary or the religious life who want to learn the faith and re-ignite their practice.
I suggest finding a Catechesis program through your local diocese or parish and try it again. You might be surprised to find the very thing you were looking for was right there all along.
I know many young couples who found their way back to the faith when they had their child baptised. What a beautiful and fulfilling experience to find this joy at such an important time in your child's spiritual life.
In the interim of checking out opportunities in your area, check out Jeff Cavins books or videos. The guy is amazing and he understands very well why young people today have become disillusioned with the Catholic faith...but he also has been a great bridge to those people because he has the gift of explaining the beauty and grace that the Catholic faith has to offer. If you're lucky, he may be in your area as he does often do public lectures across the country. To order his books, or see his schedule and his blog:
See: http://jeffcavins.com/schedule/
http://jeffcavins.com/
Here he is telling his conversion story on youtube.com
http://www.youtube.com/watch?v=MdqHko5AfS8
I recommend the following Jeff Cavin books:
The Truth exposed: His story of conversion as well as several other Catholic converts and others.
Catholocism 101: The essentials for the journey CD