I have yet to do quilted ornaments but I do embroidered ornaments. I use felt, cut a shape, pick a design specific to each child;ie, sport they play, special interest they have, etc. and embroider it on the felt. I add their name and the year. I sew the embroidered felt to a matching felt back, stuff it and put a ribbon trim hanger on it. They love them.
I use to just find an ornament, put their name on them and the date. I started the felt ornaments 2 years ago and one DIL told me later that she wanted the same type of ornament every year for them!! The older kids are impressed that Nana/Moms actually made them!! I do something similar for my nieces/nephews.
I might think of a way to add a quilty piece to them this year!!