I think I would fussy cut it -- especially the old group photographs, then log cabin around them with blues and yellows and blacks and tans. You could also use the remaining pieces of the fat quarter to make thin log cabin strips. If they are cut up you won't be able to see all the guy stuff that's on them.
The "picture" blocks could be combined with some REAL old photos from your family to make a "history" quilt.
Maybe it's enough of an idea to get you (or someone else on the board) thinking...? or started...? :-)
Blessings!
Mary Lou