Oh dear. This sounds like since the baby was born your MIL has been trying to do the right thing by not being over demanding to give you space .... but has been building resentment because she hasn't been invited and you haven't visited her. You on the other hand expected her to come round or ask to visit if she wanted to and didn't visit her because of your valid concerns about the smoking! A lack of communication about expectations, needs and wants on both sides! What a shame ...but she deserves some credit for acknowledging you might need time and space as a new mum ...you are lucky that she has that much insight into a new parents needs!
Then into this resentment building situation up pops the first opportunity for her to spend some quality time with her grandchild; excited and pleased she is very likely looking forward to it. She gets a text with your requests (which sound sensible and reasonable!) and oh boy does that building resentment kick in (remember her interpretation of not seeing her grandchild, not being invited etc is likely to be that you don't much want your daughter to build a relationship with her; this may not be true but how would she know?) ...so her responses to you come from resentment, anger, upset, hurt, feeling a bit used....and your responses to her come from anger, protectiveness of your child and maybe a feeling building that your MIL isn't really interested as she hasn't asked to visit!!
You two need to sit down quietly without interruptions and speak honestly about 1. Your wishes for your daughter and why 2. Each others needs/expectations about visiting etc 3. How this whole misunderstanding has occurred and moving on from it. Then maybe arrange a couple of little outings together with your daughter....the park, for coffee, to the play club etc ...to all enjoy each others company!! Your daughter will build a relationship with her grandmother; you will build a mutually supportive relationship with your MIL, a different one than before perhaps now that you are a mother too.
I truly hope you can sort this and that your MIL is willing to meet you halfway in sorting out the misunderstandings and the future ...for her own sake, for your sake and for your daughters sake!
Have any of you got all electric cars? Pros and cons please.