The real questions ... do you want to do something with it?
Is she saying go ahead, just to appease her Mama?
(especially wonder this, when she is not really contributing with ideas)
What would you like to make? have to keep later? etc.
Agree ring bearer pillow is a good idea.
Instead of the pillow, some have made teddy bear a bride and groom,
for the flower girl and ring bearer to carry up the aisle.
You could do a runner/table topper with the satin and lace.
Would be nice with the guest book (if they are having one) or with other items that may be on display.
Another alternative .... do nothing with it, and have the dress, as is, on display with a photo of you and your husband on your wedding day. Perhaps the groom's parents would like to do the same?
Good Luck!