You must realize first that it is him with the problem not you or your hand made quilt. I can't beleive anyone could be that cruel and rude to anyone especially his daughther.
The solution is go back and when you see it laying there just say Gee Dad I am so sorry you don't approve of the pattern so I will take it and donate it to one of the returning vetrans who are at treatment places get treatment. I personally know they love them and know people personally who donate and tell how excited they get. It also looks just the right size for a wheel chair lap. The next Fathers'd day just don't get him anything. Don't let your children know about this as it may set a bad example, however he needs to see what his reaction has done.