I do my rag quilts a bit differently. I do not use the batting in the middle layer. I have done both homespun and flannel quilts this way. I buy a less expensive, or if I can get the fabric on sale, homespun or flannel fabric that have the color the same on both sides. I cut this fabric the same size as the other two and use it as the batting. It will then fray along with the top and back layers and gives a really fluffy feel to it. I still sew the layers together with a design, possibly and "X" or a heart or spiral.
baby flannel rag quilts with different sizes blocks
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baby flannel rag quilt - 3 layers of flannel
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