Not sure if your familiar with projection but we humans tend to project our movie onto the screen of life and live the movie with all the characters doing what they are supposed to. When they don't and the players in the movie don't meet our expectations we are mad, disenchanted etc, etc.
In a sense you are doing this as well. Your wife is doing the same thing. The choices my EXW made and continues to make I would never do but....that is her choice. She will continue to think they are the best for her, even know you may think WTF. Welcome to the MLC world.
This is what healing yourself does. It gets you out of judging, blaming, bringing negative energy onto yourself. If allows you to be positive and then lead by example. not get drawn into their life and their choices.
Believe me I know it stinks and it stinks for your daughter. you can change the dynamic here. is it easy.....NO, but it is doable...yes.
I have a great life just as many on here would say the same. It was not easy on them as well. I saw the struggles in their lives as LBS's with some batsh--, crazy behavior from their spouses but they healed themselves and made it through.
YOU CAN TOO, YOU GOT THIS, YOU HAVE THE TOOLS....Please use them