You know, there are lots of dogs that I don't think are necessarily cute. I guess the difference is I would never express that to someone who owned one! You will never find anyone on this board that doesn't think your babies aren't precious, but we all seem to see things (yorkies, anyway) as one of God's greatest creations!
After reading that your mother-in-law actually raises yorkies, I would have to agree that she is probably just jealous. It would be funny to see how she would respond to a red one if she happened to get one in a litter! I bet it would be the most BEAUTIFUL puppy ever to be born!!