A friend of mine had the opposite experience. The DIL put the quilt in the closet to keep it nice for the kids. In order for something to be special to a child, they have to interact with it. They will be sorry as adults that they didn't care better for the quilt, but they will have some really happy memories with your quilt. I don't make things for three of my grandkids because their mom sells them in yard sales. At least if they were on Ebay, they would get something for them. As it is they only get 25-50 cents for anything! I love my grandbabies and I want to be part of their lives. We don't live where they do, so if my quilts go with them, so be it. I am there.
I am sorry this hurt your feelings. I am one who generally asks about things that bother me. Maybe a word on two about how much work went into it would be good. Maybe encouraging the kids to keep it inside would be ok. You will sacrifice the child's memories of that quilt then, but something has to give somewhere.
Good luck with sorting things out. I will be thinking about you.
Paintbrushbrown