Have to say I agree with BM. 'Got other plans' or 'It doesn't work for me' are fine. You could have them over for a meal, since we, on these Boards do tend to gripe about losing touch with the in-laws, but only if YOU want to. Don't feel bad about just saying "no". it is a complete sentence.
I have come to the conclusion that they either come out of this or they don't, pretty much regardless of anything we do or do not do. Remaining friends might help rebuild or future relationship, or it might validate the crazy behaviour. Do what is right for you, and your daughter, not your husband or his family.