Most of you agreed that option 2 was the better gradation of blues. It's not perfect, but I like it. It took 7 hours over 2 days to stitch up the sample block! I love the way it looks with the border fabric.
I put together a bunch of pics so you can see what the quilt might look like. It will actually be set on point, and the edges get treated in a special way. When I get around to it, I'll learn how to import photos into EQ7 and create a more accurate mockup. That should be fun!
I'll move into full on assembly-line mode soon!
P.S. The border fabric is Kate Spain's Sunnyside Buttercup in Twilight.