I agree with the ironing of it. I had one that puckered more than I liked, and ironing worked fine. I felt rather foolish ironing a quilt, but it did work.
I would iron it and give it to her. I would not mention your concerns about it. She will be delighted. I think this is a case of what we all do....see our mistakes when others who see our quilts won't.
Now that you have all this advice...I hope you can end up being happy with it. :)