My husband's sister knitted a lovely jumper for our new-born daughter. It was massive, but I've got pictures of her on her first birthday wearing it.
I hate waste and feel extremely guilty when people either spend a lot of money or time on something we won't use. We still get fussy pink clothes and foofy hair bobbles as birthday presents for our little tomboy. The expensive ones go on EBay and the other's to Cancer Research which turns it round somewhat.
To avoid confusion, ask first. Money's tight nowadays, don't waste it on expensive wool. I'm sure your daughter would be delighted with simple babygrows and practical things like baby toiletries. Perhaps her rudeness stems from exasperation at the impracticality of the knitted items. How many nappies could be bought for the price of the wool for example? Maybe she'd like your practical help and thinks knitting time could be better spent helping her out. Has she asked you to come help her with anything?
My mother-in-law patchworks. We have a trunk in our spare room full to the brim with quilts. We live in a (very ugly, but practical) 1970's house, wooden floors, plain walls, lots of storage to put things away but limited space to display things WE like. We are guilt tripped constantly about why we haven't got her patchwork wall-hangings up (mostly featuring rag-dolls, Victorian bonnets and flowers etc.). She seems to have got the message and sister-in-law now has her own growing collection of craft to feel guilty about.
It's not that her stuff is not good. It is! It's just not our taste. Material is expensive, like wool, ask us what we need or, better than that,rather than quilting, come over and babysit and give us a voucher for the cinema so we can go out. Be practical! (My mother-in-law, not you obviously!)
Also, it sounds like you knitted a lot of stuff! The sheer volume could be overwhelming as well as being premature. Us Mums like to choose our own stuff, as do kids when they reach a certain age.
So, to sum up, ask first, don't impose your taste on other people (everyone believes they have good taste y,know).