I personally think you should do the 1/4 inch around each square. The stitch in the ditch is more difficult because you are often working through several layers of material. You could do the X on the squares still or you could put a flower inside each square. They have small flower stencils and you can mark them with the pens that disappear when moistened. I hand quilt all my quilts and it may take more time to do the 1/4 inch but it is much easier to not have to struggle with the extra thickness.