The only baby quilt I've ever made was for my niece. She was a preemie and I wanted to give her a special gift to celebrate her first Christmas. I had all grandparents, aunts, uncles and cousins sign a block and then embroidered over the names so they would be there forever. The quilt was a Christmas themed quilt. My sister only lets her have it at Christmas time. My niece has been asking for another quilt and I will be giving it to her for her 7th birthday this year. It won't match her bedroom, but both her mother and I know that she will love it! As long as I see her use it, I don't need a thank you.
Both my sisters and I still have quilts that were given to us when we were babies by my aunt. They may not be in great shape now, but we still love them as much as ever and they play an important part in our childhood memories.
I won't make my older niece a quilt because I don't think she'd appreciate it as much as the younger one.