Make do and mend

When we visited my parents at Christmas, before we left, my mother pulled this blanket out of a drawer and said: 

"Your great nana made this for you when you were small. Now you can crochet, I thought you might be able to do something with it..."

I've washed it and put it in my knitting basket. It's a mixture of wool and other fibres; it flares a bit at one end, and it makes use of a nice crochet stitch which I don't recognise (my great nana was a great stitcher - she crocheted lace in vast quantities and I have a few tray cloths and things which she made). Repairing the blue edge at the one end seems straight forward enough, but I'm not sure about the other, bigger hole. 

I'm wondering about taking the non-woolly beige/pink stripes off and adding a new border around the remaining, mostly woolly stripes. But I'm not sure... any suggestions?