The other thought would be to make it a toddler pillow. As most toddlers sleep in toddler beds your crib blanket will be used when they're that size. The size for a toddler is called a boudoir, which is 12x16".
Just be sure to tell them it's just to look pretty until their little one is older. After all we buy crib sets all the time and you're not supposed to have blankets or stuffed animals in the crib either.