I'm sorry that your previous experience took away your quilting pleasure. Do you know why she didn't like the quilt? Some people just don't... My own children prefer minky blankets, which I detest. I'm all about natural fibers.
Either way, I'd definitely ask the mom and dad to be what they would like. I'd say that wool batting drapes beautifully, but it''s probably not what you want to be using in a baby quilt. A LA that I hadn't used previously used Quilter's Dream 80/20, it's definitely lighter than W&N. They also make a product called Quilter's Dream Angel, which is fire retardant and supposedly drapes nicely.
Congratulations on the new baby. I hope you continue to enjoy quilting!