If you use the embroidery, I like the pale yellow background best. I really like the idea of the simple borders you had originally planned, but can see how that embroidery would be hard to pass up. I wonder if there would be a way to do the simple borders and work the embroidery in as part of a cornerstone block? Depending on the sizing of the border, you could use 3 color strips for the border and do a 9 patch cornerstone on each corner with the embroidery as one (or more) of the patches.
I'd say at this point, it doesn't matter what you do that quilt will be beautiful anyway.