You must check the maximum occupancy number for the cottage. Usually the same as the number of beds. That may well exclude the possibility of extra people. If you break that rule it's quite possible the owner will throw you out on your ear, it's not a deduction from deposit issue.
Then decide whether it would still be a holiday for you, with ds in your room.
I completely understand why it wouldn't be - when dd was this age, if sharing our room, she'd wake at 5-5.30am, see us and pop up awake for the day. If in her own room she'd go back to sleep until ooh, 6.30-7am. That, to me, is the difference between 'holiday' because we're in a different place with different people and 'actually, less restful than being at home, exhausted and not enjoying the place or people by the end of the week, so why bother?'.
If you can accept ds in your room, only then address costs. I'd suggest either a split between the three original couples on a 'per room' basis (PIL 1, you 1.5, BIL 2.5 to sort out with his SIL as they wish), differently if PIL want to contribute more towards bringing everyone together, or a more precise 'per room per night' basis (so number of rooms x nights stayed, 5x7 = 35, attribute costs in units of 1/35).