Jeanne,
Yikes! Do NOT give honey water. I read somehwere before that honey is no good for young children. Something about Botulinus intoxication. Read this link -
http://en.wikipedia.org/wiki/Botulism
As for your posting, I can totally relate and understand you. I was initially like that too. Frustrated and stressed over such matters. But after having 3 children, I'm kinda immune to such things.
Grandparents will always be grandparents. Given the chance, they will spoil their grandchildren to bits. However, I find that bringing them to doctor check-ups and getting the doctor "tell them off" directly helps more cos the source is an unbias and professional individual. Alternatively, I just relax and let them spoil the child. But once we get home, the usual rules apply. I used to kick up a fuss... but found out the hard way that I was in turn making everyone miserable. My main rule is - if the thing they are doing is not to the extreme detriment of my child's health and well-being, I'm ok with it. Those few times of drinking sweet drinks and eating sweets won't hurt the child. But if this 'giving' is on a prolong basis, then it becomes a different story and will be nib in the butt.
As for the child, no need to be harsh and discipline on every aspect. I find that stresses us out even more. No need to follow those mothering books with precision. Instead, follow your child's lead. When they do as per your instructions, clap for them, cheer them on and be glad. But for days when the child seems to 'rebel', relax.. dun fret. Children do go thru phases of "PMS" too. During the tough times, you can still enforce your rules but discipline with love and tenderness. Screaming, shouting and beating the child won't help. It will just make the child fearful, confused and sad. Especially at this tender age of coming to 2-yrs only.
Trust me. After 3 kids, I've learned finally to let go of the nitty gritty and just to enjoy the whole moments of parenthood and being a child again with my gals.