You are doing yourself, your dd, your dh & your marriage a HUGE favour to cut them out of your life completely. I don't say that lightly, but seriously they are not nice people to put it mildly. You do not need such crazy, negative, lying people in your lives. It is not a benefit to your dd for her to be in contact with them.
It is THEIR behaviour that makes this move necessary, it's nothing you have done. Don't let them emotionally blackmail you to think it's your problem, it's not. They will not change. By all means have contact with your dh's siblings in the future if they are acceptable people to be around, but don't feel obligated on that front either.