I always just knit every stitch, from beginning to end, on every row. Looks fine to me. And I like keeping the snuggles easy, so beginners are comfortable joining our project.
Here is a link to a very large photo of a snuggle I just knit. You can see the edge well with that shot: http://www.flickr.com/photos/5964692...130833/sizes/o
I teach several young girls to knit, and they have expressed an interest in knitting snuggles for pets also. It's a quick, easy project, and gives love to animals. You just KNOW kids are gonna want to participate in that!