deema,
Thanks for posting the before and after photos. That is one beautiful quilt, and I'm talking about the after photos. I see that the edges are a bit wavy -- that's how I like my quilts to look. I understand that you are upset at the changes in the washing process, but I love the result.
I've read all of the posts in this thread, and some smart quilters have made great suggestions. Personally, I think all this quilt needs is a big box and a bow. Followed by the squeals of delight from your MIL.
Let us know how this turns out. Thanks for sharing your story because we can all learn from each other's experiences.