Ideas? Help!

I was asked to make a baby quilt for a new arrival coming in October using parts of the father's baby quilt which is much loved and falling apart. I just love this idea so I asked for pictures of the quilt figuring I can use at least pieces of it. 

Here are the pictures:

My first thought was OMG impossible, it's a log cabin with stitch in the ditch so pieces would be tiny. BUT then I found myself thinking about the love sewn into that quilt and I'd like to salvage what I can. 

Here's some of the thoughts I'm having: 

Would the fusible cotton interfacing I used on the t-shirt quilt strengthen the fabric enough that it could survive a baby and the repeated washing's. 

The baby quilt doesn't have to be a log cabin, so maybe razor cut the usable fabric out and make something completely different? 

Some of the blocks look in decent shape, could I cut them out batting and all, then incorporate them into a new quilt, removing the old batting and again maybe use the interfacing?

Could I applique new log cabin blocks, or pieces of them, onto this one, leaving usable sections open, then do batting and backing enclosing the old quilt? 

I'd love to do this, but my mind is all over the place, so please help! Any ideas you have would be much appreciated, you guys always have such good ideas :)

Thanks,

Dana 

New FO for June

June's NewFo linky is up, the first of the summer (Barbara's words), it feels like next she'll be writing about Fall and we'll all wonder what happened to summer. 

I don't have much to show, but I did a lot in June, you may remember the pile of T-shirts I showed you last month, they turned into this:

I'm really pleased with the end result, laying it out was a chore and there's a ton of Y-seams, but it was all worth it.

I made the back out of his childhood sheets that she had saved, it's all pretty special for him. 
Cute little side story, the mom wants another quilt for her daughter when she graduates, one problem, because she wore girly dresses and had pretty princess sheets, the mom passed all of her things on, so now she's watching ebay and haunting thrift stores looking for similar items to pass off as the daughter's. She said she'll just hide them in her closet and hope the daughter doesn't catch on, LOL.

After that big finish I made my Let's Book It quilt:

For the Let's Book It challenge I'm not only getting rid of old magazines, but I'm trying to use up stash, I had the perfect fabric for the backing, so that's a big plus.

That was it for me in June, I spent a few days dying fabric and managed to dye my hands bright red, normally I dye them blue. There is something a little more horrific about bright red, when they're blue people just act like they don't notice, but the red was a real attention getter, LOL. 

Gotta run, summer is calling, please check out what everyone else was doing in June, remember you only have to start something for the NewFo, no finishes required. 

Later Gators,

Dana