I finally made the pillow case out of the ladybug material. Yes I admit it took me forever to get around to a 15 minute sewing project. It turned out a little big, because I didn't feel like trimming extra material. (By the way, that is not his blanket or bed, that's way too girly for a little boy.)
Which means my son can use it as a sleeping bag. He loves it. He went to bed the other night in it.