I guess it would depend on the quilt and "how" utility it is. I have what I call a utility quilt that rides around in my car just in case I need it for a cushion at a tennis match or a wrap during football game or heaven forbid a stuck in the snow incident. It is in good shape only faded from sitting in the sun. The quilts I leave in my my living room and bedroom for extra warmth, get circulated so often, they don't get worn.
I guess If a binding needed attention, I would fix it. A hole, I'd fix it. Really tattered and shabby from constant use, I'd turn it into a dog bed and donate it to a shelter.