All perfect praise be to Allaah, the Lord of the worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
The questioner has done well by removing this picture. He has to strive to convince his wife's family of the soundness of what he did.
Abu Talhah narrated that the Messenger of Allaah, sallallaahu ‘alayhi wa sallam, said that angels do not enter a house where there is a dog or a picture. [Al-Bukhari and Muslim]
Moreover, a non-Mahram man may see this picture and this is impermissible. Also, perhaps there would be someone who would want her to return to the way she used to look before wearing Hijab and so may use it to harm her.
In brief, the husband bears no guilt for what he has done. On the contrary, he has done what Sharee’ah requires him to do.