Read through your thread, Springchik. This is really a very serious situation.
Imho, your dh needs counseling - about the past and present manifestations of that experience, just to talk to someone to validate and/or recalibrate perspectives on circumstances. As with everyone in all walks of life, there are consequenses to our behavior and your dh is heading for some big time consequences (losing his family) if he does not tend to his behavior.
Mil doesn't want the marriage to break up because then, perhaps, she'll have to deal with him. If she has trouble saying 'no' to him, that is her problem, not yours.
Again, imho, it seems he does not respect you. At all. Please, require respectful communication, or leave the 'conversation'.
You know you can not force him to respect you-so this isn't about you trying to change or control him, but you do not "have to" tolerate disrespect. Your personal respect, self-esteem, and other boundaries do not evaporate upon marriage. His 'over-functioning' shall not cripple your self- functioning.
Keep your separate account, and stop letting him talk you into eroding it. Why not open yet another separate account? This is your escape fund, and he knows it. That is why it bothers him. Tell him to stop giving you so many reasons to use it.
Lose the cell phone. Make a new boundary: start with a mandatory "quiet hour" 11 to 2 -whenever- you will not communicate, period. I was about to say all this 'attention' is not him being needy-it is all about controling you; but it is him being needy: you supply his psychological pathos...he has worn you down.
Just guessing: Knight in shining armor in courtship phase? The children do not get this honeymoon period; he dominates them out of obvious distinctions-he is bigger and his brain (parts ) is more mature. Perhaps, he sees them (and you) as objects for him to use and not as real individual people with their own brain and their own feelings (thus Grace's reference narcissism). And, as others have said, the cycle begins again.
Sorry if this seems preachy, I don't intend it that way. I know everything isn't black & white (if it is to dh, that is another clue)...but emotional abuuse is b&w-it can not be endured without severe effects. The effects may not be apparent over night, but they enmesh in the victim's brain and are hell to expell/recover from.