I have this quilt from a friend. Her's husband's grandmother made it. There are two dates, 1925 and 1927, which are believed to be the start and finish dates.

Lots of velvet and what I believe is silk. Miles of hand embroidery. Hand tied with embroidery floss.

Some of the non-velvet patches are completely frayed. I know that a fusible webbing could be slipped behind them, but it looks to me like the fabric is simply wearing out on the whole quilt.

It hasn't been abused, but has obviously been used and loved.

What do you think? Should I try to repair it? If so, how? Or would it be better to recommend that she figure out a way to safely display it without disturbing it any further? Any recommendations for display?

Could you use a lt wt stablizer and add a small embroidered design to cover?

I am glad you asked. I have some pieces that look like that. My Mom made them in the 1920's. She was going to make a robe out of them.

The pictures indicate a lot of repair would need to be made.
In my opinion there is too much to make the work worth while. You can certainly find compatiable fabric in antique shops and applique over and redo the embroidery.
I would not do it due to the work required and time spent.
I have read that quilt restorers put netting or bridle veiling fabric over the pieces to preserve the original.

Do you have a museum in your area? They're a great resource for conservation methods.

I would recommend she just use it for display, as is. Maybe fold it so the bad parts don't show. Definitely do not use it anywhere where it will be sat on or against, or rubbed in any way. This is a common problem with crazy quilts of that age, even if they were never used, some fabrics just self-destruct.

I'm thinking that even if I repaired the 6 or 8 frayed pieces, the rest are just going to continue to break down.

Personally, I'd say go for the display angle. Recently, there have been several threads on quiltvillechat, a yahoo group, regarding restoration. Even restored, those fragile quilts aren't meant for use in the traditional sense.

I've seen coffee tables that are meant to display things. Kind of a box on legs with a glass top. Folded so the non-damaged areas are most prominent, this could be beautiful.

I have no suggestions, but wanted to say that it is truly a beautiful quilt, and worth rescuing, whatever the decision.

It really is a treasure. It's sitting here next to me and I feel like it's a precious baby! It also weighs a ton! I think there is an old blanket in it for the batting.