I would use that for OBW though the repeat looks like only 12"? You might get some predominant black blocks because of the background areas but you don't have to use them all - or you could use them as half blocks to fill in. Regarding not enough colour variation - OBWs work best with a limited palette - ie 2 or 3 colours, many shades within those colours is fine. Otherwsie they can look too busy and not much different from the original fabric. I would probably then fussy cut some peacocks and do broderie perse in or around the borders. I love it! :-D