So, we picked out new fabric together. I wanted to stick with a batik to keep with the original quilt. Surprisingly, Tim took this all very well and didn't mind too much about the new fabric or not having his blankie for two weeks. The new batik is very different, but it does have dots like he wanted. I separated the quilt and sandwiched it together with new cotton batting and the new fabric. Rather than tying it, I felt like hand quilting. It took a little while, but I think it was worth it. I created a double-fold binding with pieces from the back and barely had enough. I finished hand stitching the binding last night and Tim had his blankie once again. I was prepared for him to shun this new rendition (he'd already commented on how it seemed really different). I put the blanket on him while he slept and he trooped downstairs this morning enjoying it lots. I'm really happy it turned out well.
And here is the blanket November 2008:
On the back, if you look closely, you can see where I stitched up a long vertical tear near the top.
The quilted top. If you look closely you can see the stitches. My quilting is rather uneven, but I don't hold myself to a very high standard with this sort of thing. To save time, I just quilted every other square. I'm really not sure if that is acceptable, but it seems to work okay.