It can be a heated discussion. Some people feel that it's a gift, "I'm giving from my fabric and my time and you better just darn well appreciate it." Other people want to give the very best they can. I primarily make quilts for QFK and QOV's. The standards are very clear and I like that.
For me ugly quilts aren't so much design and color, it's the ones that are not made well. I have absolutely no problems with seams not matching (that just adds character) or weird colors but please make sure your seams have a good 1/4" seam-or even the scant 1/4" seam. Don't use a 1/8" to make it fit or completely skit that section. I've seen some tops that barely caught the second fabric or just missed by a hair. The first time it's washed the seams will come apart. Trim your blocks before you put them together, don't work with 4"-6" squares and try to make it fit. It doesn't-we've seen it.
Don't try to make a 40" top fit a 38" backing by quilting the extra fabric into huge puckers. Don't use a basting stich to quilt, if the tension is wrong, fix it before giving it. I've seen some that the tension was so bad that all you had to do was clip a couple places and unsew the entire thing.
Don't have the battting stop 1" or more from the edges of the quilt, if you don't have enough batting, trim your top and backing a little or wait until you have more batting.
Stuff like that. If you were in a situation where you would be receiving this-would you want it? would you appreciate the thought? I feel that quilt gifts are like giving a hug to someone and I want my quilts to reflect me in some way.