My mum wears far too much strong smelling perfume, and I hate that DS and DD smell of it after she's cuddled them, it's not that I don't want her cuddling them, it's just she ruins the way they smell.
However, I'm aware I have a very good sense of smell compared to most people and how things smell is a big deal for me, I adore the way my DCs smell (well, when both clean), it's a mixture of the clothes washing liquid I use, baby shampoo and their own 'musk' and it's lovely. My mum's perfume is too strong and overpowers all of that, so they just smell of her. (this drowning herself in perfume a recent development for my mum, too so it's not how I remember her smelling as a child - strong perfume was just for special occasions until recently).
I don't try to stop her cuddling them, but I do insist on hair wash in the bath after she's gone so they go back to smelling of them, not her. It's not as bad with MIL, although they smell of her a bit, she doesn't wear as much scent so it's not as obvious after she's had a cuddle, although her house has a particular smell and they do smell of that when they've visited, but then we all do.
Oh and I think DS has my sense of smell, he noticed when I wasn't wearing my perfume the other day and didn't like it (he's 3.5 years old).