I have been to Gulf Shores and panhandle of FL many times, but have not gone to any quilt shops there or along the way. Next visit I will definitely checkout A&E. Sounds awesome.
As for restaurants, I didn't care for Lulu's- too touristy and very very crowded when we went. Food was just ok. But maybe if it was not so crowded.
I do like Lamberts in Foley. Nothing really stands out to me in Gulf Shores - just some average seafood. I did like Tacky Jacks too. The Crab Trap near the state line is good, and a tad pricey. Worth it though.
Have fun and welcome to our state!