I'd say she's definitely worth $500! I hope she goes for the highest price possible and that you and your family have a nice Christmas.
Out of a hope that lemons can make lemonade, could this be an opportunity for you to start your own business? You are definitely talented! Maybe a local quilt store or group would be willing to let you teach a class or two. Heck, I'd love to take a class on the paintsticks from you and I would think there would be others in your area who would be glad to take a class or two. Just a thought.
If I had $500 I would give it to you in a minute!