Should I reconcile with my in-laws? These people have done nothing but disrespect and undermine me.?

My MIL constantly says rude and cold comments to me and about me to my friends & neighbors and has been a thorn in my marriage for all 8 years. She hates me with no reason, and I am not tooting my own horn, but seriously she has no reason. I am not a drinker, drug addict or a cheater. I love her son more than I love life itself and we have an awesome marriage with 4 amazing kids. The last straw was in June when she took my daughter somewhere me & DH told her she was forbidden to go with our DD and she did it anyway and basically when confronted told us she has every right to do what she pleases with her grand kids! I told her off so bad I left her head spinning and haven't seen her since. (Its been bliss full by the way) But my DH has since made amends with her and is urging me to do the same. She never apologized (its not in her genetic makeup) and I feel no desire to speak to her any longer since she does not respect me. She didn't see us or the kids for months and still made no attempt to rectify the situation so I know things will not change any time soon. I am not mad anymore, and I have no problem forgiving and letting go of my anger from what she did, but am I obligated to reconcile with her for the sake of my marriage and my DH? I don't want to hurt my DH, but I don't want to open myself to be disrespected ever again by her. And she just cant help herself. So would I be considered cold and selfish if I cut her out of my life for my own sanity? I have no problem w/him seeing her and taking the kids as long as he supervises them and dont leave her alone with them to do as she pleases, I just want no part of it.