You handled it the best that you could under the circumstances. And I agree, the more you trust your instincts in caring for your children, the more other people will view it as normal.
Look at it as a mission to educate, that is the attitude I have tried to have when someone found something wrong in our choices - birth without drugs, breastfeeding, homeschooling/unschooling, etc.
When I first was getting to know one of my SILs (a nurse, so this surprised me) who was older than me, already had children when my brother married her, she told me she thought breastfeeding was gross. I told her I breastfed. Then said, well, I guess it is ok, but not after a year old. I said I nursed mine past a year old, until they weaned themselves. After that she said nothing else. I mean, what could she?
My parents are pro-breastfeeding, so I have always had the attitude that it was normal, I grew up knowing I would breastfeed and I did.
And my 6 year old still will give me a hug and pat the boobies, LOL. Fond memories, I guess.
I also nurse openly in my house regardless of who is visiting. Our home motto is, "If you enter this fair city, be prepared to see some t*tty." 
In other words, people who enter MY house play by MY rules, and if they don't like it, they can leave. 
