I would be very concerned that at the first laundering the hand painting would be ...gone or damaged. As far as quilting on linen , it can be done, but my experience is that it does not wear that well in real use, but so much depends on the quality of the linen. Many newer linen has other fibers , which can be a plus or minus. Yes , linen does shrink, and since the origin is undetrmined , it is really difficult to advise how much shrinkage. Linen also wrinkles so much more than just cotton. Infact it is best to iron linen slightly damp for best results.
This is not something I would recomend to someone to do with hand painted linen.