Gorgeous quilt!!!
With that kind of applique (larger pieces), I much prefer doing it by machine -- so much faster, and looks almost the same. My favorite kind of applique is invisible machine applique using freezer paper. Learned how to do it from an earlier edition of Harriet Hargrave's book:
http://www.amazon.com/Mastering-Mach.../dp/157120136X
I tried needleturn applique and got a few blocks done, but realized that my hands cramp up awfully fast when I do it. Think it has something to do with the shape of my fingers and hands.