Thanks for all the feedback guys, I do appreciate it.
I did talk to her about it and she said that she had wanted to do tiny tacking here and there with a decorative stitch on her machine but just lacks the know-how and time to do it. She doesn't want anything added to it but did ask if I would tack it with a few tiny(like 1/4" size) hearts or bubbles(that match that fabric in the quilt) to give it a tufted look and was very relieved I fixed her binding. She "..just doesn't understand the whole '...trim batting and backing smaller than the top...' part" she read online for front-to-back self-binding. I really love this one she has made, and my grandson, Alex, can't wait to get his new blankie. He is 2 and is very hard on his blankies, that is why I was so worried about it holding up.
So, I will do what she has asked, as it is her quilt and I wanted it to stay that way. She really loved the idea of me adding a label to the back that says it's from her as well, and was very touched that I would do that for her she said. She never even thought to do such a thing. LoL!