some important facts stand out for me.
(1) she did say they felt terrible about what happened to the quilt. in their shoes, i might also have put off telling you what had happened until i had no choice. we might all be grown, but i'll bet most of us are still kids when it comes to our parents. (i'm waaaaaaaaay not 25 anymore, but my father is still Daddy. ;-) )
(2) it's difficult to believe they'd have left that quilt on the bed if they knew what the dog would do to it.
(3) they didn't throw the quilt away. they not only kept it - holes and all - what's left of it is still displayed on the bed. is it possible that they still treasure it and all the memories it now represents?