Yes -- they're acting very controlling. Rather like some of my own relatives, who notably do not have baby blankets from me while some of my friends do. You don't have to accept or buy into what they want. This isn't about them. It's about you wanting to give something of yourself.

If you want to make a blanket, find a pattern you like and a color or colors you think will work, and let it be what you want it to be. And then give it to whoever you want to give it to.