If I were you I would tear it up and use it for rags. I know it sounds harsh and wasteful, but since you feel this way about the fabric now, every time you look at it in your quilt,it will bring back all these bad feelings. Why torture yourself over and over again? Tear it up, call it a day, and move on to bigger and better things!
Tell yourself it was a "quilting" lesson you took and paid for.
Now get out some "happy" fabric and quilt again with a smile on your face! LOL