Like the others, I say directional .. that way you can read them all while on the bedtop.
However, if a lap quilt, I might put the names around the circle/square, so that whichever way the quilt lands on the lap, you can read some of the names. (Although, despite saying that, I bet it would still bug me that they were not all facing the same way!)
Whichever way, a treasured quilt for your friend, for sure!