Yes, I also just don't get this
A lot of this "pc stuff gone mad" comes down to manners. To saying that, actually, the opinions and feelings of this or that group ARE important.
Clearly golliwogs cause offence to at least some people. I have to say, I am white and I find them bloody offensive, knowing the history. Excellent reasons for this have been given ad nauseum on this thread.
No, just because you played with golliwogs as a kid, you are not a racist. I did, at my grandma's house, and while I am sure I do have prejudices that I haven't noticed, I do my best to educate myself out of them. BUT if you think its ok to perpatrate an offensive steroptype simply because you have warm and fuzzy memories of it-if you think that the opinions of people who ARE offended by it, for excellent reasons, are less important than your right to re-enact your childhood...well
So what is the issue? Get rid of it. I wouldn't lose it, actually, I'd give it back. Personally I'd have a talk with MIL too. She has also been pretty rude to you in giving your kids toys which, if I've read the OP correctly, you were likely to object to.