I have dozens of hand done pillowcases from my Grandma. I think your quilt idea is wonderful!! Please keep us posted if you make a quilt. I'd love to see where this idea takes you.

I would use the whole front of the pillowcase for the block. I would take the whole front of the pillowcase apart from the back and then fold so the part under the crochet work is a couple of inches longer. That way the crochet work is loose from the back but you don't have any raw edges to deal with except around the outside edge.

I am adopting some theories as I continue to read suggestions. Thank you sew much for the lovely compliments and great suggestions.
My latest theory is to use half of the pillowcase by cutting it across somewhere above the embroidery, not too short as I am hoping to have them almost a square.. stitch a new seam across the new end...then use the 'mini' pillowcase as an applique to one very large 'backing' piece. I will leave room below each appliqued pillowcase to embroider the name of person who did the embroidery. I will have laid out my appliques and have each one well marked on the backing piece. I plan to do alot of handwork on this quilt by appliqueing them down by hand with silk thread as I did with my Handkerchief quilts. I think that this might work.... thinking out loud here... ;-)
I know it will be larger than the Handkerchief quilts but I think still do-able by hand.
Does this sound feasible?
Thank you sew much for helping me brainstorm this out! I appreciate all your responses! Thank you!!

Monroe: I agree with you about Fray Check...it does dry harsh and stiff. I switched years ago to Fray Block by June Tailor, it dries much softer, I use it in heirloom work all the time.

Why not applique these pillowcase sections to a white whole cloth quilt? You can arrange the pieces the way you love them without having to worry about blocks, sashings etc. You would just have the beautiful heirlooms and then surrounding them marvelous quilting repeating the designs of the pillowcases.