Catlover, you have my sympathies. Families operate differently. In my family, we have been in a similar position, and like yours, there is concern and involvement with nieces & nephews. We discuss our worries in this way, we consider it our business, and don't see it as gossip when it is just us - uncle, aunt & cousins.
Having said that, I would agree that you should be very careful about saying anything to your niece's parents. You might be able to say "What do you think of him?" in a very general way, which would invite them to share concerns, but would allow them to "toe the party line" as well. If they don't share concerns, then I agree that there is nothing to be done.
My own children have tried to keep an independent relationship with their cousin, so she can chat with them away from her husband (who worries us a great deal). I have been as neutral as I can with the parents, helped by the fact that a baby was conceived very early in the relationship - so I ask lots about how the little one is developing and give lots of praise, so managing to avoid talking about the father at all!
I wish you luck, and hope that it turns out better than you expect. In the meantime, this is a forum for support