IMHO, if you try to leave out that extra row, you will affect the overall pattern. If I was in your shoes, I would follow the pattern, as closely as possible. Most older Postage Stamp quilts are cut into 1 1/2" squares, that finish off at 1". If you take that one inch row of squares out of your equation, then your overall quilt will be a little smaller than you expect it to be, but that will also take away the "points" of each blue square. I am in the process of making a Postage Stamp quilt, (cut at 2", finish off at 1 1/2"), because I want to use up all those gazillions of squares. (Actually, mine will use close to 2000 squares, and they will all be hand sewn - busy work while I watch tv, or ride in the car)
Your quilt is lovely, BTW. A lot of love went into that. You are lucky to have it
I am sewing my squares into blocks that are 7 squares x 7 squares, to make it easier to handle, then will sew those together until I get to king size. The 7x7 blocks finish off at 10 1/2".
Love the secondary pattern of the blue squares. What a neat place for some intricate quilting to highlight those blocks.