If you are unhappy, that's all that matters. It looks fine, and quilts are notoriously "puckery." They're actually prettier when they DO pucker. If you want her to use it and snuggle in it, I would definitely give it to her. Could you explain to her what happened and how you feel? She'd probably tell you what everyone else is saying ... its not that big of a deal.
Good luck with whatever you decide.