Having read all the posts on this subject, I can say (and probably offend some in the process), I think that we as a people have become somewhat snobbish in our outlook. You don't want to make or give something you wouldn't want in your home and that is fine up to a point, but if you are someone who has NOTHING, most anything warm and durable would be welcome regardless of colors used. I don't think a lot of people even begin to realize lhow life is in some of these third world countries and how things might be used. Some of these people have absolutely nothing and would welcome most anything to keep them warm, perhaps use as a door covering and whatever and could care less if you would use it in your home or not. A lot of them have no idea of how to care for a quilt, and could care less on the care of it as long as it serves their needs, plus they have never been taught the 'how to' for a lot of things in life, their main concern is to exist from day to day.
Now, having said that, I realize there is a difference between those "utility" quilts and what you would make for Project Linus or children's quilts or a 'chemo patient or nursing home resident' but let's not worry so much about the colors as the quality and durability for the recipient.
We as a small guild have received donations of things that could not be used for quilts, but can be used in crafts etc by someone else. Then there some things that should have been 'trashed' before giving them to us, but again people try to assauge themselves by giving it away and doing a 'charatible' deed rather than toss it to begin with. We use what we can, offer the rest to others if they want it and then try to recycle the rest with a local recycling group.
Just because it is donated to you does not mean you HAVE to use it, not all donations are worthy ones. Use what you can and pass the other along either to users or recycle. Let's don't get so hung up on what we would use or not use in our homes, a wealthy person wouldn't use in their home what a middle income or poor person would use, but it is still usable and would be welcomed by others. Let's think about quailty, durablity and usefulness and leave our snobbish ideas out of it.