I had a similar problem and the "fix" started when I decided just exactly how much time, resources, effort I wanted to put into the project. I compared the "down and dirty" way to fix things with the "right/perfect" way and then compared those two to one of the suggestion you've already received from bearisgray, to fix the holes as well as possible and let the quilt be loved to shreds while working on the next one.
My decision was for the "down and dirty" fix. My quilt problem was a quilt belonging to me but no emotional connections. Cats had clawed spots creating holes and opened seams. I filled in the holes with similar fabric, hand stitched to attach the original fabric (underneath the original fabric) to the patches and, voila! The opened seams were handwork too. That quilt is on its second life and the furry vandals have turned to other interests involving scads of scratching towers/boards/pads and catnip galore.
Now I am wondering what our new-ish GD will do to the quilt I made for her and the one I've got in my mind for a big girl bed - coming soon. My current take is that things can usually be replaced somehow but a person cannot.
Love that little one as much as she will stand for and give her loving, wonderful "GGD/GGM time" as well. Only you can. If you'll hug her for me, I'll hug mine for you....
Pat who had a wonderful Gram too.