As I recall, this was going to go to a child? For that purpose, I didn't like the original fru-fru, so I'm glad you removed it, but it's like the ornate border is putting it back on. I personally like photo 1 and would leave it. The 54X40 size is just fine.
Now if you've changed your mind and it will go to an adult to be used as part of their Christmas décor, then I'd add the last border. The fabric is gorgeous, but to my mind, not for a kid.