I would recommend that you remove the stitching before going on to the next step. It will be much harder to take out after you have stitched over some of it with the FMQ. As others have said, what you have done is not STID. Even though I baste with Elmer's school glue I still STID major area because I think it makes a nice finish. I think it takes some experimentation to find your niche for quilting that you are happy with. You are doing yourself a big favor by working on a small project first. Good luck.