I don't think people have any idea how much work goes into making a quilt. But then to ask you to make quilts for all the family, is a pretty big order. On top of that, the items they gave you are not traditional quilt fabrics.
I agree with Kathy that it would be in your own best interest to change your mind, if you have not already, and tell them it is not something you feel you can do. If they asked questions, then I would give them answers, because they obviously have no idea what they are asking. One quilt would be a big project, and then for children and grandchildren. What do they think you are, a Factory?
I get upset just hearing the audacity of some people, friends or not.
June