I, myself, would have your daughter ask her friend if she could repair it in ANY way that she could, so the quilt could be given to your granddaughter when she becomes a mom.
I have or had my son's & daughter's musical teddy bears.
My daughter gave hers to her little girl.
I still have "my" baby outfit that my mom brought me home
from the hospital in. Guess what? All 4 of my granddaughters have had a picture taken with 'my' little dress on. I still have my little dress.
Memories is what it is all about! Tell your DD to ask her friend to repair to keep it....she won't be sorry! It will bring alot of memories back to her little girl!