Stop feeling crushed!
Accept that this is their first baby and that this kind of behaviour is normal these days for new parents.
If you want to be part of your grandson's life, you just have to accept that your DIL's rules must be respected to a certain extent.
Hold the baby while feeding him as she wants, if she is present and do it your own way, once she is out the door.
Joke with your husband about the pillow - no need to use it when DIL is not around.
If you complain about this sort of thing now, she will stop you being anywhere near the child as like as not.
As to your lotions and make-up: Here I think your DIL is the reasonable one.
Perfumed products may well cause allergies if infants are exposed to them, so don't use them on the days you are looking after the child.
I would wash him and change his clothes if he were my baby and came home smelling of perfumed products.
Sorry, if you are not useing perfumed products, but really the same thing applies. All houses have their own scent and where it may be silly to "wash it off a child", she is a new mother, feeling insecure (as we all did) and desperate to do the right thing for her precious baby.
She will relax as time goes by and her sense of smell which may be over-sensitive due to pregancy, child-birth and lactation will return to normal.
If you allow your hurt feelings to show right now, it could cause a family row of the kind you will regret, so please, try to look back over the years to yourself as a new mother and try to summon up a smile and a head-shake for all the daft things new parents do.