Hi Kim,
Cotton is cotton. It is fine for clothing, quilts. or projects. The only issue I see is that it is not treated with a flame- retardant and thus may not be recommended for childrens' sleep-wear. Back in the days of my youth ('70's), when I learned to sew, I only had new clothes -if I sewed. I also made my 1st quilt in `1977, from the same fabric cotton that was available for sewing. I think fewer folks sew kids clothes now b/c you can buy them so cheap, and since they grow so fast, 2nd hand stores are filled with expensive brands for often less than you can buy the fabric to make them.
So I encourage you to just "go for it!," if you enjoy sewing and ironing for the wee ones. Cheers! Cathy vJ in MA