I agree w/ the others. Do you have any other examples of how your in-laws are overbearing? If not, it does seem a bit cruel to treat them like second class citizens to your parents. Like, why is it ok for your parents to have holiday meals with you and not your husband’s mom or sister?
If hosting is getting to be much with added people, tell your husband you need help. All the planning, cooking, cleaning, etc. shouldn’t fall on you. Or take turns hosting? Or ask both families to chip in?
There are ways to solve this issue without cutting out your in-laws.
Unless they’re truly awful people? But I think you would have gotten into that if they were.