19 levels of Fucked the Fuck Up. best guesses would be that your uncle was left alone as a child and abused, now hella paranoid for his daughter, orrrr he saw the girls kiss or something like a game or as a dare and hes a huge homophobe and freaked out Super-Christian style.

the biggest confusion is his wife's support of this. what sane woman would want to be with that man? who would condone video taping little girls sleeping and enforce weirdo rules about personal space to freakin children? both of em be batshit. save your cousin.