I just made a baby quilt for a friend of my sister with satin ribbon. All I did was get a wide enough width that I could fold in half (I ironed it), with the finished edges you just sew around and voila, I've worked with the "satin binding" and it's way more money, Walmart $4+ for 4 3/4" yards = 14.25 feet vs the ribbon $2+ for 18 feet.
My mother had a baby quilt with satin ribbon binding that lasted through two of her children. When she had the third baby she choose to put new binding on to be blue for her son. That blanket was my mom's favorite for size, travel ect. so the first binding met a lot of hard wear.
Most people are not having lots of children and a baby blanket is used and then savored, wear doesn't become an issue.
On the other hand I know someone who made a queen sized quilt about 10 years ago and used cotton bias binding and now it inspite of perfect care it needs to have a new binding put on it. The binding takes the most wear and tear of any part of the quilt.
Personally I love a satin bound baby quilt, and all of the baby quilts I make for charity get a satin binding on them before they leave. If you're concerned about wear you could always use two layers of ribbon, it would cost more, but would last longer.