OP if it makes you feel uncomfortable that you aren't holding your babe, then you must figure out a way to stay holding him when you feel like you want to be close to him,.
Breast feeding gave me near psychic powers with my babes and I KNEW when they were unhappy, or needed to be with me.
I'd wake just before they did and we had a very strong connection which has lasted.
Your PIL sound like they want a 'go' for their own satisfaction, not yours and not your babes. Them saying they want you to bottle feed him, so they can give him a bottle too would upset me too, as it's a negative comment about your parenting choices.
Is there any way you can limit the time spent with them for a while, until everything calms down for you, and your back on a more even keel.
A sling might be perfect as you can wear him and be close without having to fight the grasping hands.
Take care of yourself, and try not to let things get your down. Put your babe and yourself first, and make sure you're happy.
You're doing a great job.