I can understand your feelings but once a gift is given you must let it go in your heart. Think of how you've used the things that people have given you. We got a handmade quilt for our wedding (long before I was a quilter) and used it for several years. Then we got a king size bed and now it is stuffed in a hope chest and only comes out when company comes. Also, someone hand quilted a baby blanket for my daughter and it was stuffed away for a while but has recently experienced a renaissance and is on her bed again. The worst was when she was 4 and cut up a blanket knitted for her by her now deceased grandma. Luckily I was able to have it repaired but I haven't given it back to her yet (she's 7).
In fact even a pottery piece that I bought myself on my honeymoon and love I found in a seldom used cabinet the other day. For now it just doesn't fit anywhere but maybe one day it will.
The funniest was my best friend from growing up. I had given her a raku vase for her wedding. Since we were childhood friends I really misjudged her taste. She had it prominently displayed when we visited but I have a feeling that she stuffed it in the attic after we left because it really didn't fit in with the rest of her decor. What's better? Pretend to like something or to be actually using it and making it a part of their lives?
Life is too short and much of our junk is going to outlive us anyway. Enjoy the fact that they are USING your blanket and it is serving a purpose in the world. and P.S. it's NOT because your stippling wasn't good enough or because a nine patch isn't hard enough ... they just needed something to cover the couch and your thoughtful gift was handy and nice to look at.