I don't want to pry and please feel free to tell me that it's none of my business.... But is DH uncomfortable with your breasts now in the bedroom now that you're BFing? I mentioned this thread to DH and he said it sounded to him as though your DH was just looking for any excuse to get you to stop due to his own feelings - but the one he gave didn't sound right to him. He thought it sounded as if it were more "personal" than that.
DH and I have had some hurdles to get over in this area. The conversation wasn't easy to start or to have, but we did it. We've talked it through and are doing well now.
Lastly, I think one of the PP had a good point when she said that she told her DH that he'd have to take over all feedings. My DH has said that he appreciates how much work I do when it comes to BFing, but also knows that it would be a lot MORE work to formula feed. Nevermind the cost!
Oh - and for your MIL? Your DH has obviously talked to her so she's just enforcing your DH's wishes in her own wonderful way. I highly doubt that you'll be able to change her mind until you change DH's.
You can do it Mama - you've got time to do it right.