omak

I agree ... I think for symmetry and punch, the blue strip cut at the same size as the little cornerstone squares (the blue part) and stitched in with the paisley wider border will be very classy.
And, for the binding, I think I would go with the blue again ...
As for quilting, I think the pattern is begging to be stitched straight along the seams ... not stitch in the ditch, but move over 1/4" or more and both sides of the seams for the center parts of the blocks (echo quilting) ... in the sashing, you can do a loop d' loop, or flowing lines ... a lot of your decisions about quilting is what you purpose the quilt for, and how far apart the recommended quilting distance.
Some batting recommends that you stitch no further apart than two inches. I have found Warm and Natural cotton that allows for stitching ten inches apart. On the two inch distance, it means you are dealing with a batting that won't stand up well to lots of washing and use before it starts balling up and becomes lumps within the stitching lines.
Ten inches apart may seem like a long distance, but that is just telling you that the batting is woven together well enough that you can tie the quilt.
Stay with a low loft batting so that the quilt drapes and wraps.
The less quilting, the more "comfy" and cuddly the quilt is. The more quilting, the more intricate your design can be.
It is a beautiful quilt. <wave>