Am I over-reacting to my In-Laws beng so controlling?

My In-laws have a key to my house. They have come over before when I was taking a nap and just took my 9 month old daughter out of her crib and took her with them. I called the police because I thought she had been kidnapped! They told me they had rights and they could come and get her at any time. They basically try and tell me how to raise her and they dont believe in punishing a child so they let my daughter do whatever she wants too. ( My daughter is 3 years old now). They are in their 60's and my husband thinks we should let them have their say because they are both in bad health but they are ruining my life. I can not stand it! Am I Over-reacting to this! What can I do?