This is one of the best blankets I have ever had, and it makes one of the best gifts ever! I received one of these blankets when my son was born, and it was embroidered with his name and date of birth. It is extremely soft, the size is just right for a newborn or small baby, and it is lightweight while providing warmth. There are a variety of colors available, so it is usually not a problem to find one which will match nursery decor (if needed).
It is machine washable, and can be put in the dryer as well. We have washed ours numerous times without any problems.
Although I usually associate Pottery Barn with overpriced items, I think that this one is well worth it. With the personalization of the blanket (and gift wrap), it makes a really thoughtful gift for a new mom.