I would finish that crib top for a couch throw for the little girl, and be sure to tell her the history of it. Tell her that it is a gift from her long ago grandmothers and that she is special because she is the one to get to use it. She can wrap up in a long distance "hug" from them each time she uses it.
You can pick out one of the colors in it and get some stronger matching colors for the bindings or to make it bigger if you want.