Overreacting or doesn't give a damn?

I apologize for the length but I need to give a bit of background first. 

My brother-in-law, we'll call him Jack (as in ASS) for this story, is in the process of getting a divorce.  She's all moved out and living with her new victim and he's moved his next thing in.  When, we'll call her Goldie, and he were dating he brought her over a few times, asked what we all thought.  I was young and silly then and thought he actually wanted my opinion so I gave it.  I told him "I think she's a gold-digging cow."  (She really was, in my defense.  She didn't want to work, came with tons and tons of credit card debt, wanted him to buy her everything, and pay off said debt, on and on.).  Anyway, Jack got mad at me, didn't talk to me for three weeks.  My own husband, we'll call him DICK for this story, you'll see why later, was a bit ticked off at me.  I suppose he had reason lol.  Apparently in that situation the proper answer is "Oh, she's great!"  Goldie also had one child from a former marriage that she'd pawned off on her mother because she didn't want to be bothered.  Jack did give it a heck of a try but the kid was way too messed up by the time he came into the picture. 

So...fast forward a bunch of a years and Jack got laid-off so Goldie had an affair and left him.  She did, however, get a truly gifted divorce attorney so that when Jack went back to work he got a royal reaming.  He pays out the wazoo in alimony, poor guy.   Luckily (And unlucikly as it turns out) there were no children for Jack.

So, he's moved on to this real winner.  I'm actually loving Goldie these days.  I might call and beg her forgiveness myself on his behalf.  This new girl makes her look like Mother Theresa. 

The new girl, we're going to call her...um...Evil seems about right.  Evil grew up her entire life in a northern state and lived in a Southern one for half a minute.  Doesn't stop her from talking with the worse Southern accent you have ever heard. Ever.  Really. EVER.  She has four children, but only has custody of one of them.  A cute little 11-year-old girl.  Can Jack pick 'em or what?  She's dumped two of them off on their respective baby daddys and one off on her mother.  The fourth one, the cutie patottie, though,  is with her. 

Now we come to the present day. 

She moved herself and the kid in with her mom and then suddenly her mom kicked her and out and she had nowhere to go so she moved them with Jack.  Now Jack's paying for Goldie and paying for Evil and her kid.  Evil's also got the kid calling Jack Dad and is constantly saying things like "Your dad this" and "Your dad that".  Whatever.  Jack has changed his FB status to reflect the new kid.  Again, whatever floats his boat, right?

She's taking to calling all the relatives Aunt and Uncle and cousin. 

She refuses to get a job so it's all on Jack to support her.  The kid's dad is in jail.  The kid has no other family.  She told me that the minute that divorce is final he's marrying her.  Again, whatever makes Jack happy, I suppose.  I did the whole "She's great!" thing when asked.

On a side note, she's a huge joke to me and my kids because she actually LOSES HER ACCENT MID-SENTENCE and then picks it back up again.  Before Christmas she made this huge post on her FB about how she didn't want her daughter to be disappointed yet again by not getting what she wanted for Christmas and how she always spent Christmas day feeling so bad about being such a bad mom and on and on.  Her list, the 11-year-old girl, remember, consisted of the "new" ipod (not the old crappy one), an Android Galaxy Tab, a new cellphone with a 4-G plan with unlimited data, a new laptop, RC cars, there's more but I can't remember it.  There wasn't anything on there any 11-year-old I know would want.  At my in-laws 50th anniversary party, we couldn't hear the speech my FIL was making because she was chanting CHUG CHUG CHUG at her 11-year-old over the wine glass. 

Okay - so here's the issue.  My youngest daughter is also Jack's goddaughter and her cousin is also Jack's godson.  So they were over the other day and he was messing around with her, doing the shove each other thing that they do, and he asked her what she wanted for her birthday, which is in Jan.  She was messing with him and she jokingly said "I want you to tell Jim (godson) he gets nothing and spend all your money on a new truck for me."  It's kind of the relationship they have, joking around all the time.  He used to tell her all the time he used to diaper the wrong end, stuff like that.  Of COURSE she didn't mean it but then EVIL jumps in and says in this snotty voice "HE HAS A DAUGHTER NOW YOU KNOW!!!"

And she said it with those exclamation points too.  In caps.  My son had to leave the room.  My youngest daughter was just absolutely shocked into silence, as was I.  No one even knew what to say.   When we told my husband, you remember, DICK?  He didn't care...he was like it was no big deal. 

So...I put it to you guys and your collective wisdom.  Are we overreacting?  Is she an idiot?  Does she not care what she says?