I think you got some great ideas for cutting the circles with a fusible already applied. I think the "blanket" would be really gorgeous made from the full color spectrum of Kona solids on a black background. I saw something similar to this a year or so ago and it took my breath away. The circles were fused all over the top and the only stitching done to the circles was the all-over quilting. There's nothing like black to make the colors pop! Just a thought.....Barb