Material dilemma

I thought about doing a new project and learning how to make cushion covers (my sister has put in her first request) but I found myself sucked into the world of quilting again! I quickly threw this together (doing my first 'Disappearing Nine' patchwork) thinking it would make a nice baby quilt for future gifts. However, after looking at it for a few hours I'm not sure I like all the material in it.
I need some ideas on how to make it look 'less retro' and more cute.

Failing that... a tutorial on how to make one of those plastic bag holders for the kitchen!

Not as cute as I'd like!