What about a "Square in a Square" with the fabric as the center of the square? Your 2nd picture doesn't show the scale, but it looks like you wouldn't need to fussy-cut if you could get more than one picture in the center square. You could either pick up all the colors in the fabric in the outer square (if you like scrappy) or stick with the blue for the outer square.
I also think this fabric would make great kitchen accessories such as a mixer cover, potholders, etc. You could smile every time you see it.