I am loving all the great suggestions. Yes, I will make all the little blocks and play with arrangement. I think I will get the other panel out and try variations with one and two panels.
The fabric is still available in LQS as my LQS has run out and re-ordered. It's a Michael Miller called "Children at Play" by Sarah Jane and there are several different novelty prints, the panel, the balloons, and the various coordinating polka dots.
Thanks for all the suggestions. I will post more pics when I get the little blocks finished.