I agree. Given the amount of time it takes me to make a quilt, I would be very dismayed if there was a fair chance it was going to turn into a huge chew toy. Make her a beautiful wall hanging and perhaps a chew toy for the dog. Doing a quick google search I found this link: http://www.thriftyfun.com/Homemade-Dog-Toys-Guide.html. Maybe later you can tell her you want to make her a quilt, but would like to wait until the dog has been trained. Good luck finding the right solution.

My friend had a BBQ for 6 or 8 friends recently and she has two dogs, one is 2 and one is not 1 yet. She had two big chew bones still in the wrappers on the counter, so when we were all eating she gave the dogs these new bones and they kept busy in the back yard. I am sorry for you. It is bad with this kind of dogs. Make things that don't go on the bed.

Yelling will not stop the chewing. Many a dog has died from their chewing habit, swallowing large parts of pillows, blankets, etc. and getting them lodged in their intestines. Sometimes expensive surgery saves them and sometimes it doesn't. If you are in a position to offer advice, you might mention that to her.

Meanwhile, I like the idea of a wall hanging or an offer to store the quilt until the dog has outgrown the chewing habit. I'm assuming the dog is more or less a puppy. That said, it can take a couple of years to outgrow the chewing and sometimes they never do. :(

How about this? My DH wanted something to hang over the mantel for the holidays. I made tiny button holes and got a battery pack of led lights at Walmart (about $9.00) and now have a nice wall hanging that would work perfect for your niece that can be used forever and out of the reach of their loving pet.

They still will eat the quilt!!!!!!!!!!!! Trust me. I have a dog. I love her dearly, but no way would I make her a quilt AGAIN! Yes, Ma'am, again. She chewed up the one I made for her - all doggie/puppy. I had thought about making "Kitty Kwilts and Bowser Blankies" and sell them. WHY!!!! So I didn't! Edie

I'd say a small enough wall hanging that the dog couldn't jump high enough to get at.

Sounds like a good alternative to me. Maybe even a matching wall hanging?

I would just make a simple patterned quilt and give it with love. You won't have a ton of time invested in it if it does get ruined. It's really the niece's responsibility to take care of the things she treasures. If she lets her dog chew up your quilt, it's her loss....

Make her something that she will use up high.

There has been great advice offered here. I would not say a word to this young mother. If you are aware of all this, I am sure much has already been said and she has most likely circled her wagons in "love me, love my dog" mode.
I would make a quilted gift for her (perhaps a doggie blanket), make the pepper spray concoction in a previous post and soak the quilt with it. I would include a note that it has been sprayed to discourage the dog from chewing. I would not make a blanket type quilt to protect the children.
If this dog has put holes in the walls, I am pretty sure he can get to anything most anywhere. I am not the greatest quiltmaker but I will be dog-gone (pardon pun) if I am not going to make an effort to protect what I make if there's a way to make it less appealing to this dog. Best case scenario, it works and she asks for the recipe! Worst case, your niece washes the quilt and the dog gobbles it up and presents her with a huge vet bill.

Now I am going to pet our little rescue beagle mix Red whose tooth never touched anything inappropriate, give him a belly rub and a nice treat.