I would finish it and practice your quilting on it. I have my first quilt that I think looks awful but it reminds me of how far I have come (still not there yet but have come a long way).

Whenever I start a quilt, I just cut one block/section then sew it together. If all goes well, I cut the remaining. A few bad experiences taught me that one!

I too cringe when I see or hear "throw/threw it out". So many of us quilt on very tight limited budgets that we would be delighted to take anything you are frustrated with and see what we can do to rescue it.
I think it would be awesome if you finished it and used it for practice of your FMQ skills, and then if you don't want it, donate it. As so many said so well, really cold people are not picky about what will keep them warm. BUT, if you are headed to the trash with it, think of your fellow quilters and offer it up here on this thread or on the "For Sale or Offer" pages, pleaseeeeeeee.... smilesss and hugss!

Great idea to applique over the problem spots...maybe you could add buttons?

I am sure any puppy or kitty would love it, and never see the flaws!

I'm sure someone will love it. Donate it to charity.

Turn it into an art quilt!

I keep a "picnic" quilt in my car all of the time. I can use it any time for a ball game, spontaneous event that means sitting on the grass or heaven forbid an emergency when I must be in my care for a long period of time. I made a scrappy quilt just to use up odds and ends and practiced my quilting skills then into the car it went. No, big deal to let it ride in my car until needed and I have used it several times already.