Am i wrong to believe what i do about my "mother in law", shes done enough damage to the both of us?!?

She sounds awful. No, you are not wrong, you are absolutely right. This woman has her priorities all wrong and by the sound of it, she always has. Your bf is lucky to have you, he needs a nice caring woman like you. The sooner you can both break ties with the b*tch the better. She's a bad'n.