I can understand if Amy Butler or other designers mentioned here don't want you selling a quilt labeled "Amy Butler". To me that would be a problem. The same goes for the teams. If you sell a fleece jacket labeled "New England Patriot's jacket" using their licensed fabric, that should not be allowed as they didn't license you to sell it. But if you just sell the item without saying that it's from the team (even though their fabric is there) there should be no problem. Especially if you're not mass-producing those items.
If you were to ever sell a quilt, purse, or other item that you made and these people came after you, except for the headache of it all, imagine the publicity you would generate! The community and probably national support that would be generated by this would be fantastic and most likely you would quickly sell anything you made.
So if anyone hears of one of these lawsuits, we should get the word out. At this time when the little guy is getting pounced upon by big corporations, this would surely gain a lot of sympathy from regular people everywhere!
That said, I will not be buying such products and will point it out to LQS owners when I see it. I think one of the women designers mentioned earlier on in the post sells to JoAnn's so be on the lookout there. Also for purchasing online: if online shops received enough inquiries about this they might go back to the manufacturers and ask that they not continue this practice. I know the next time I make an online purchase I will either call the shop or send them an email in advance to let them know I'm concerned about this issue, and not that I worry about being sued but just on the general principal of it.