It looks really nice. I too recognized Souther Gentlemen. I haven't started it but hoping to make it someday. I have trapunto in mind.
Your stitches look really nice. This is what I do so I don't have to worry about the stitches.
Before I start I set the machine to straight stitch and take a few stitches on the outside edge of the design. The engage the blanket stitch. Sew around the design and come around to the area where the straight stitches are I do blanket stitch over the straignt stitches. Switch again to straight stitch and take a few straight stitches. Take a few stitches in place to close and your stitches will never unravel. If you are concerned of the raw edges showing, reduce the length of your stithes. Make sure the horizontal stitch is right outside the border of the applique barely touching.
One more thing...If the blanket stitch will not meet again (not every design ends where it started), I take a few straight stitches forward, the same number backwards, and start then the blanket stitch. When done, sew blanket stitch all the way to the end and take a few straight stitches on reverse to secure the blanket stitch.
Blanket stitch is very pretty but it does come undone if not secured properly. I found this youtube with a few useful hints.
http://www.youtube.com/watch?v=mTYtBtprJ2M
I sometimes use the double blanket stitch because it has double the numbers of layers of thread to secure the applique.
Was I clear as mud?