I know that there are some blanket patterns where you knit the blanket one long, thin panel at a time and then sew them all together. Maybe you could do that and it would show off how pretty the yarn is a little better.
You should never knit something that you are not excited to knit. What's the point if you aren't having fun? Remember, you can always give the blanket once the baby is born, too. For, say, a one month birthday gift.
Advice from a Moose: Think big * Spend time in the woods * Eat plenty of greens * Hold your head up high * Stay on track * Keep your nose clean * It's OK to be a little wild!