D.,
I totally agree with Naomi S.
For every action, there is a direct re-action. In your case, there will be a dominoe affect and it WILL directly affect the quality of care that your daughter will receive in the future from this particular care provider.
I recommend moving both of your children completely out of this situation as soon as possible. There is no denying what you already know based on what you have shared about the provider's husband and I would think his attitudes and words will impact his wife, your care provider of your children. It seems that this situation has been "comfortable" at best for you up until now, but it seems obvious that you've always seen the red flags based on what you have shared. Now it is very important to pay attention to them for the sake of your sweet daughter as well as your dear son and consider moving both of your children completely out of this situation, especially if you try to re-negotiate things with your care provider and things don't work out.
I want to encourage you to not be overly focused on your care provider's feelings as it is so important for you to focus on your children and their care and their needs as well as what you want for their care needs to be. Please don't get me wrong here as I think it is great that you are a sensitive person to another's feelings. What I am trying to say is that it is best to focus on your own feelings as it seems that you already know that this person is not providing the quality level of care that she could be for your children as she is busy doing other things like keeping her house while your children "play" in front of the tv.
There are so many resources available to find and research online at your fingertips for truly great child care providers. I would not settle for mediocre when it comes to my children and their care as there are so many great caring and loving people that are not in child care for the money alone. I would recommend starting to look online right here on mamasource.com in the child care directory. I would urge caution should you decide to use craigslist.com based upon warning postings that I have read from parents where their new provider was less than desirable, but I think keen awareness is best used anywhere you decide to seek your new provider.
I have a compiled list of child care websites that I'd be happy to share with you. Please let me know if you are interested.
D., I wish you great success should you decide to find a new care provider.
My best,
B.