When I go into "washing mode" - I now soak
everything washable in hot water before washing it.
I still overcast the raw edges of larger pieces - either with a zigzag stitch or serging them - before washing them.
I used to "just" wash fabric in cool to warm water - until I had a dark blue and a dark red (Jinny Beyer fabrics) fade on to a light gray when i starched the units. I was surprised when that happened.
My feeling is - that if the conditions of a large piece - fading, shrinking, chemicals, etc. - merit washing it - the same conditions still apply to small pieces. (It only takes one very small piece of a bleeder to mess up a large project.)
I have not been able to get rid of moth ball smell either -
As far as the hand-dyed or painted pieces go - if they go through the washing process to your satisfaction, then I think they would be okay to use.
Yes, it is a lot of extra handling before getting to the cutting and sewing stage - but the effort is worth it to me.
(I am not known for being overly ambitious or enjoying strenuous activities - the peace of mind is worth it to me.)
I am also "assuming" that whoever the recipient is may not be aware of "the proper" way to care for a quilt - or may not have easy access to washing facilities.