It's beautiful and yes, for me I'd not want to cut into it, rather to repair it.
From what you have shown you can probably repair it. Then have it quilted which would help stabilize it for a long time into the future.
Yes it may take some work ... but oh the enjoyment in doing so and the rewards in seeing it completed.
Of course, it's yours .... if a sweatshirt makes sense to you, then that's certainly your prerogative.