I think she'll know that it was made out of love for her. It will keep her legs/body warm, for sure. Tell her that it was washed multiple times so hopefully most of the shedding has been completed.
I've made a lot of rag quilts. Some with better flannel, some with cheapy fabric. Over the years, do they look matty, yes. Only figured that out when I made a new one for our use, then compared the old ones with the new one.
It looks lovely to me! I think Aunty Pam will treasure it, as it came from your heart!