I think your wallhanging is fantastic. My husband is a veteran and he would be tickled with it.
What you are feeling is a rejection of a gift of time and love (neither is a renewable resource). I imagine your father felt he was "just" commenting on how the item appealed to him at that moment. Sometimes men lack tact, whether they are fathers, husbands, sons, or just men. They tend to say what pops into their brains.
I hope you are able to feel good that you gave a gift that reflected your love; what the receiver does is out of your control.