Hi Marge,
In my family to use a quilt in the family Christmas photo would be a way of honouring it. I am sure your nephew thought you would be pleased to see that he chose to feature the quilt he won at the reunion in his photo.
In my house when watching TV in the colder months, I will often have a quilt over me a cat or two on the quilt and my dog beside me, partly on the quilt. I would never conceive of the idea that the maker would be disappointed by the way I was using the quilt.