I can see how the parents are annoyed, and MiL should have known better, but at the end of the day, it is not worth souring a relationship for. When my first was born, neither DH nor I were permitted to see him for two days. We couldn't even look at him through a window! It upset me deeply. They said he was jaundiced and that they wanted the forceps marks to fade a bit. On the third day, DH kicked up a fuss (which, it being a military hospital, could have got him into a whole heap of trouble) and they relented. They weren't particularly nice people.