Husky mom your MIL is totally wrong and saying what she did is rude.
I thought they were priceless because of the old standby "apple for the teacher" thing. I would give them to the teachers and ignore what was said. They were meant for the teachers and I think they will love them. It really isn't what you give, it's the thought that counts. My mom was a teacher and until the day she died she treasured and kept all those little gifts from her students.