Personally, I'd get really hurt feelings if I worked my butt off on a quilt only to have it shoved in a drawer. Just going by what you said about these parents, and how picky they are, I wouldn't waste my time, effort or energy on making them something. I'd buy from her registry.
I know it's not the baby - tell your friend to wait until the baby is old enough to say what he likes and make a quilt then and give it to the kid on his birthday. Just my humble opinion.