It was really a culmination of events that led up to the cut off. She ostracized me from family gatherings, bullied me, talked over me, gossiped about me, had husband's cousins/siblings turn against not only me but also my husband to the point that when we bumped into a cousin at a grocery store we were told that we "should shop somewhere else"...
She tried to break us up on several occasions, and has treated my husband disrespectfully and he has very little good memories of her as a mother.
He really wants her there? Nooo.

I dont think MIL should be allowed in the hospital, she sounds dreadful and did not do a good job of bring her own family up.
The time in hospital with a new born is the most precious time, it about what YOU want, its about mummy & daddy bonding with their new family member. Its not about pandering to a abusive MIL.
If you want your family there, thats OK they have not been abusive.
Its hard I know but husband MUST be strong on this. MIL being involved will do no good at all.
And for MIL to say she will come anyway. Disgusting. Where is her respect? Bounderies have to be drawn very firmly with this selfish woman.