First I must mention that I'm a very firm believer that quilts are for cuddling. That's why all the quilts I've ever made are completely machine washable, and plenty large enough for cuddling (except for this one).
But ... baby quilts are a whole different story. From what I've read, babies should not sleep with blankets, pillows, crib bumpers, or quilts due to an increased risk of SIDS (due to suffocation). As the paranoid first-timer that I am, I'm definitely going to follow the "no blanket in the crib" recommendation. So using it in the crib is out.
I could use the quilt as a play mat ... but I already made one of those. And since I've been a quilter for about 14 years, we have plenty of other quilts in the house to use for play mats.
I hope to take the quilt off the wall and let our baby use it when she gets a bit older (and can use the quilt as a quilt). But until then, I think it makes for some nice wall art.