I would chalk some of the other people's behavior up to their own issues. Maybe SHE had a problem letting her son out of her sight. Not all the parents will stay. Might not be anything to do with your house. There's a fine line sometimes between "friend" and "acquaintance you are friendly with at x events."
I have friends with immaculate homes that could be in magazines - and older children or no children. My house will never be like that. When we visit some of these friends, DH gets on a wistful kick and I told him that unless he was willing to spend as much of his free time cleaning as they do, that would never happen. I've slowly worked to declutter (Freecycle is awesome if you make the rule that you can't take things, just give) and just recognize that my house will not be a showroom. And frankly, I don't want to live in a showroom.
If you are worried about your friend, have you tried talking to her? Maybe she's more relaxed than you think. Maybe she just wants to see YOU.
Right now I have a laundry basket on a couch, a trike in my livingroom, some half-dried flowers in a vase that I need to compost, and the remains of DD's craft on our dining room table.
I also grew up in a house that was SO messy that I stopped having friends over. So I understand that. Take a breath and remember that is not your house and you are not a helpless child. If you need to clean, take one thing a day. Do the biggest/most bothering stuff first. And ask the rest of the family to pitch in. You might also consider hiring someone to help you before the visit. Give it a once-over. One of our compromises is that DH and I hire a wonderful woman to come in 2x a month and clean really well. I realize this is not something everyone can do, but sometimes it can be worth it to hire someone for just a day now and then. Ask friends who they'd recommend.
You can also rent a steam cleaner or borrow one for the carpet. I have a Bissel Pro Heat that I have loaned out to friends and family. It got enough stains out of the carpet of my SIL's old rental that they got their deposit back (some stains were from before they moved in).
I wouldn't worry about style. I guarantee you that 90% of the homes in my neighborhood still have the 60s in the kitchen or bathroom. You're not out of date. You're retro. ;)
If your house is clean enough and you still feel upset, consider therapy to get past it. It sounds like you have some family history to get past and kudos to you for recognizing it.