I think your knitting looks great. I like both colors, but I really like the blue. It just seems like it would really pop out in your blanket. If that even makes since!
I also slip the first stitch and purl the last stitch of each row to help pick up stitches. I have also been binding off with a larger needle size to help out.
DD is sleeping right now and the boys are reading, so I'm off to knit!