This is what I would do too! In fact I have done it - chose the wrong fabric to make a class project - hated it - finally threw it out. Someone asked why I didn't donate it to charity - my response I wouldn't give something ugly to a charity - and it was truly ugly.

Take the project "as is" to Goodwill or another resale charity in your area. Someone will want it. Life is too short to spend your time and effort on something you don't enjoy -- especially when your main reason for doing so is enjoyment.

I think I might add another colour, or subtract the one which screams out the most.

The first one I did was actually a pattern called " coin -something " became a quilt for a cancer patient. Finished fine.
Two months ago did a flannel one -ugly - to me but figured out the pieces were too big. Went to the homeless shelter where they now have 14 children and the manager said it was great . Now I feel that my time was put to good use.

I made a quilt some years ago out of orphan blocks - I thought it was ugly. But, when my niece was moving her family to Minnesota, I let them each take a quilt with them. It was their early Christmas present - they got to pick and I didn't have to ship ... she picked that ugly quilt ... she thought it was beautiful. Proof that beauty is indeed in the eye of the beholder. There was a post (not here I think) about a new guild that was getting started and they were making charity quilts -- they were looking for donations -- I was able to send two tops that I didn't want to finish (they were all assembled, just needed backs and quilting) and a whole stack of UFO blocks. I got the sweetest thank you from them. It felt good to let go of things that I knew I would do nothing with and someone else would.

I am working on an ugly quilt right now. Don't like how the block looks yet I never give up so placed it aside and worked on a brand new Kaffe fastest quilt fabric with batiks, which is tedious and multiple piecings....ahh nice.
Well after a few Kaffe blocks I picked up the other quilt pattern and made a few more blocks then placed them on the bed. Wow, what a surprise to see that the ugly quilt was actually coming together. Sometimes you need to walk away for a while then come back to restart a project.