I've made MANY rag quilts. Some of the less expensive fabric pills. And by less expensive, I mean most of the flannel from JoAnn's. You can use an electric sweater defuzzer, however, the next time it's washed, it will do the same thing. Did you use 'rag snips?' They are amazing! I no longer ruin my regular scissors when making rag quilts! I say just present it as is. You can preface it with this is what the washer & dryer did. Grammom put all her love into it, just for you. Sometimes it's too much for the quilt to hold and it spills out!