Very cute quilt, the theme/ colors are adorable! My suggestion would be your first option, facing each other...but having said that, I don't thing you'd go wrong either way. Good luck!
V.

I agree - no matter what you choose it will look great.

My first inclination was to have them face each other. And I still think that would be a great option - but I think it will also emphasize the right side and left side of your quilt.

I think alternating rows will emphasize the rows, whereas I think alternating squares will give a more all-over pattern. So, I think it depends on what feel you want to accomplish.

Be sure to show us what you decide to do!