Think of all the soldiers who get her quilts... It was good of you to confront her, as who knows how many bad quilts she has done. Each one goes to a person who deserves the best we can give. I think I'd take the sts out myself and send it to the person here who offered to quilt it for you. Your refusal to let the original quilter work on it again is a statement in itself.
People should always give their best work when they donate quilts. ESPECIALLY to our service men and women!