Am I wrong to feel this way and wanting to find an alternative solution
You can feel how you feel and nobody can take those feelings away, but whether those feelings are justified given your behaviour is another matter.
or should I go along with what hubby is proposing to do?
I think that's a good idea, unless you have another proposal, that would be agreeable for everyone.
Any advice would be extremely appreciated.
As it stands, you've upset the whole family with your behaviour.
You need to apologise to all them, including and especially your step daughter, since she got the brunt of your attack.
You need to bear in mind that perhaps your DH is evaluating your marriage after your outburst.
No parent really wants to hear their child criticised or spoken to as you did....and by saying you were fed up, it's very clear that you've not liked her for a long time, if at at all.
Would you want to be married to someone who had these feelings towards your child?
How would you feel if he did what you did to your child? Would you find it acceptable because he was drunk?
What I continue to find about your post, is a total lack of personal responsibility for the situation.
You have presented yourself as a blameless victim who lost it, because of your 16 year old SD....who you present as the persecutor.