I'd be so thrilled to get a memory quilt that you made for me, all I'd see is the love in it.
Give it to your friend as is. It's a memory quilt. None of our memories are perfect; they're all pulled and stretched by time, love, kindness and sometimes a little regret. And, of course, what we learned from our experiences as we live our lives.
The quilt you made reflects all that. It also another set of memories - your time, kindness, love and a tinge of regret over how the quilt looks.