He would be welcome to apply under PNP if you withdraw your spousal application. You might have some trouble explaining to him why you cancelled it though.
If you're caught lying to CIC, it's called "misrepresentation." Your husband could face deportation and a two year ban from Canada. No visit, no sponsoring, etc. He could also face needing Authorization to Return to Canada (ARC) after the 2 year ban, even if you sponsored him. ARC costs about $400 (I think) on top of the other fees. It's really not a good idea to lie to CIC.
Plus, if you lie to CIC to get PR, your PR is never safe. CIC can go back, even years later, and strip you of PR and deport you. It's considered fraud. CIC does win these court cases.
Do not lie to CIC. If you have lied, thinking it was minor - fix it or withdraw the application. If you lied about living together when you are truly living apart, withdrawing and allowing him to apply through PNP (if he qualifies) sounds like a good option to explore. Don't rush off and do it without exploring your options.
It sounds to me like you need an experience, qualified immigration lawyer to help you. You're wading into legal issues and no one here (that I'm aware of) is an immigration lawyer and/or qualified to give advice on immigration in a legal sense. When I say qualified, I don't mean whoever is cheapest. You need someone with a case history, someone that has been to court and argued cases successfully. Ask to see their history.
As far as your in-laws go, they will be a pain in your behind as long as you let them. This is your life and in Canada, you have a great deal of control of your life. Put your foot down and deal with it. Complaining to strangers on the internet isn't going to get you very far. Looking your husband in the eye and saying "You need to tell your parents to butt out" works a lot better.
For many people, you have to demand respect.
