It would certainly bother me to not have our D under our roof for the holidays. IMO, she trumps everyone else and the extra room in the house is HER room, especially if she’s home!
My H and I have had issues with this over the course of our marriage. In my childhood home, extra guests went to the hotel. In H’s childhood home, people piled in on sleeping bags on the floor and every available nook and cranny. It was considered “rude” to get a hotel room for overflow company.
FWIW, I would have MIL come at another time.
We’ve had company for as long as a week. It’s too long. We also prefer 4 days max both for staying in someone else’s home and hosting ourselves. After that, I get antsy to get my space back.