I am another who thinks she should return your quilt to you in its damaged condition. Not out of suspicion,necessarily, but because you may be able to salvage parts of it for small projects. It IS still your quilt. Monetary compensation should at least be offered, but at the very least more than one quilt LA'd for you.
You are very sweet to be so forgiving. If it were my quilt, I know I would have cried buckets.