I cannot give up on old quilts. I always feel the need to revive them. There are many ways this can be accomplished. Before you do anything to an old quilt, you must remember that any alteration or repair you make to a quilt can take away any monetary value it may have had. I do not yet own any truly historic quilts so I can fix, repair, redo, reuse and recycle with no ill effects! This makes me happy because most of my quilts hold a sentimental value to me.
The first thing to get ragged on a quilt is usually the binding. If you have a quilt with a worn binding --- simply replace the binding. The new binding will make this quilt like new.
If you have a quilt that is so worn that the batting is thin, the backing is thread-bare and the quilt top has some holes --- I have the perfect solution. I have done this to many quilts with great success. First, repair the quilt top the best you can. Replace or patch the top so it is stable once again. If you are a machine quilter, go ahead and sew through all of the layers. This quilt will now be considered to be the new quilt top!!! Next, I layer this "quilt top" with new batting and a new back. Then I quilt with a strong overall stitch pattern such as a medium meandering. Finally, I put a new binding on the quilt. This is a great way to breath new life into an old quilt.
When you have a quilt that you feel is worn beyond repair --- do not throw it away!!! Examine the quilt and see how much can be saved. You may be able to lay out pattern pieces on the "good areas" and sew a vest or jacket for yourself. Perhaps you can salvage enough to make a tote-bag. If there is not enough for that kind of a project, you could cut out a retangular piece and add a binding to it to make a beautiful table runner. You could cut out 2, 4 or 6 placemat sized pieces. Bind them and you have a great looking table accessory. You can use this same method to create a table topper.
If you can salvage some small pieces --- top-stitch one or more to a denim jacket or a sweatshirt for a great look.
If all else fails --- cut out a small piece and have it framed. It will look awesome hanging in any room of your house or would make a great gift for your favorite quilt lover.