After hemming and hawing about this for a week, I finally decided to bite the bullet and take off the binding on one side. As the quilt and loose binding lay on my table, I could see that the binding was definitely too long. After measuring TEN times, I decided that I needed to remove about 3/4 inch. Doesn't seem like much but it was enough to make a huge difference in the finished product!! It took about 3 hours to do both sides and that was time well spent.
This was something that would have continued to bug me and now I can package it up and send it on its way. Thank you all for your input and kind words about my quilt. Every comment and suggestion was much appreciated.