Well, I happen to think it is GORGEOUS! At least she told you, as you said. Some people don't understand/appreciate handmade quilts, they would rather have something made in China that costs 10% of what a homemade one does. I guess that's great for those people. She would have probably either regifted it, used it as a dog bed or thrown it away.
Good for you for standing up for yourself (and your quilt)!