I May Have Insulted My MIL

My husband and I own our own home. It is fairly small-- 850sq ft. We decorate mainly with my husband's art (he paints) a little bit of artwork I picked out and family photos. Most of the family photos are of his family because we see them often, but I try to put up photos of my family too. Last week my SIL and BIL had photos done of our little nephew and they gave us a nice one. It is small and will fit on our bookcase very well once I get a frame. Yesterday my MIL came over and was like, "I got the pictures of the baby blown up big so you can have a big one." I said, "No thank you we already have a copy of the photo, we don't need more." She was obviously not expecting that and got a little pouty. She was like, "You don't want a big photo of him to put up?!" I said, "Um, No, we're about to have our own baby. I want to save space for photos of her and for the three of us together." She put the photo back in her bag until they left. As they were leaving she was like, "I guess I'll just take this home if you don't want it." I don't feel like I was in the wrong here. We are constantly taking pictures down and rearranging to try and have room for everything. I just know once we have our newborn photos done, I'm going to want to get those framed and put up. What would you guys have done in my shoes?