AITA for keeping kids from my MIL?

My husband and I have been married 7yrs (together 12). His mom and I were totally fine, or so I thought, for the first few years but then shit hit the fan and she just consistently started being horrible to me/us. Fast forward to a couple years ago, I finally found a therapist who got it and she diagnosed my MIL with narcissistic personality disorder. Husband and I have since been working really hard to set boundaries and really limit his mother’s involvement in our lives. He has realized a lot of instances from his childhood where she was essentially emotionally abusive to him and his brother and she’s only getting worse with age.

The kicker is that we now have kids - almost 4 year old 6 mo. MIL thinks she’s entitled to time with them and basically acts like we should just ignore all her shitty behavior from the past so she can pretend she’s super grandma. She’s not allowed to babysit and we only see her when we have to on holidays, bdays, and some random visits (works out to be roughly once a month). I don’t want my kids being close with her. She’s manipulative, mean, selfish, and a master at gaslighting. Even after being confronted by a therapist and both her sons directly, she still doesn’t see herself as the problem. Sometimes I still feel guilty bc my kids don’t really have a say I’m the matter, but at the same time I am the parent and I view it as my responsibility to keep them safe and manage their surroundings until they are old enough to do so for themselves. My husband absolutely sees his mom for what she is, but she IS his mother so I think a part of him wishes she could be closer with our kids.

AITA for running interference and keeping her at arms length?