I agree you should take it to the person, who recommended her. Other than that, I'd have myself a good cry and then take lots of detailed pictures, of the work. Did you tell the LA'er of your disappointment? If not, you should. Regardless of how sweet and proud she was, she needs to know she isn't ready . . . before she messes up yet another valuable quilt!
I'd go ahead and tell my niece about the quilt. She'll understand why the special quilt will have to wait.