The Never-ending Blanket

My friend was pregnant some time a year and a half ago, and i thought i'd be a great friend and make her some baby hats and a blanket. i got those hats done. they're in the slide show. but this bleeping blanket is still on the loom. that baby is now going on 8 months and my friend is pregnant with her second child!!! so i'm really gonna try to get this blanket done this time around. how embarrassing would it be if it isn't done in time AGAIN?!the issue is, i'm doing it on the longest of the knifty knitter long looms. so it takes forever to do a row, and even if i get ten rows done, you can hardly see it cause the project is so big! in addition, since the blanket has been on the loom for over a year, the loom is misshapen from the project and one of the pegs is unstuck and keeps on coming out when i knit!! its driving me crazy!!! but i think i'll do this. i'll finish off the ball of yarn i have now. then i'll have a small rectangle shape. the color is the same green-yellow of the baby sweater and hats. i'll get some all yellow yarn of the same weight and make like 4 smaller squares and 2 skinny rectangles and mattress seam them to the blanket around the outside of the rectangle!!! i might even do a different stitch on the smaller squares and rectangles for some visual interest! this way i'll be doing smaller projects that i can get done in a day or so and see progress happening!
here's a pic of what i've got done so far on the blanket:


And here's a "sketch" of what i'm thinking of doing: