Violeta,
Don't get discouraged; your pup will learn
I agree with Dakar that consistency is the key here, along with puppy obedience classes in the future. Puppies don't know any better; they do not know how to behave until we train them. We went through this with both our girls (the biting, nipping, etc.). All we had to do to teach them that biting was unacceptable, playing or otherwise, was place our hand over the top of her mouth and squeeze gently when she went to bite and firmly say, "NO BITE, NO BITE." We would do this constantly throughout the day. We were more consistent with our youngest golden, so we only had to do this for about two weeks and there has never been a problem since! Consistency, consistency, consistency.
Simply saying, "NO" when they bite, jump up, bark, etc. is not helpful......no what??? You need to label/name the behavior so that they know what you are telling them not to do, i.e. NO BITE, NO JUMP, NO BARK, etc. It works. By placing your hand over the top of their mouths and gently squeezing when they go to bite or have already bitten, also shows them that you are dominant, as dogs often try to show dominance with one another by placing their mouths or paws over each other's mouths. My two girls do this all the time.
Your in-laws need to understand that discipline/training is actually 'LOVE" (when exhibited properly), not cruelly. The principles are the same when raising children. They must be disciplined/trained so that they learn how to behave and the difference between right and wrong; this shows them that we care enough about them to discipline them. This is the same for children and puppies. We, the adults, are responsible for that. Perhaps explain this to your in-laws and perhaps they will see discipline in another light.
As far as your puppy not being as affectionate towards you because you are the 'disciplinarian,' don't take it to heart. Just cuddle and play with her as much as possible and the bond will develop. Puppy obedience classes is a great way to bond with your pup too, and I agree with Pug lover that it would be beneficial for all three of you to attend the classes! Other great ways to bond with your puppy is through bodily desensitization and grooming. To get your puppy accustomed to grooming needs (trimming paws, nails, ears, brushing teeth, etc.) start desensitizing her by rubbing her legs, feet, belly and ears; start brushing her teeth, gently. Get her used to a cotton ball rubbing the inside of her ear and a brush going down her back. All of these things bring you closer to her, as it is one-on-one time together--just you and her. I absolutely love the time I spend grooming my girls because it is close, intimate time with them and they know whatever I am doing is for their good.
Just some ideas...