Knowing When To Call it Quits

I love the whole knitting process...designing, trying, knitting, wearing....some people just want items, some people don't care what the result is as long as the knitting is fun/educating, whatever. I'm a bit of both.
Some people are aghast at the idea of ripping out "hours" of "work". Not me! I've learned, if I'm not happy during the process, how can I be happy at the end? I knit to keep my hands occupied on car trips, while I watch TV, etc. It's a time filling with an awesome end result. With machine knitting it's often easier to rip it out totally than to rip back and carry on. Gasp. And sometimes you change your mind. Gasp!
I picked up two bags of "1lb Mill Ends" from Wal-Mart, for $5 each, which were very obviously Patons SWS. Normally, it'd sell for about $5.99 for an 80gr ball...and I got over 800gr....The one downside of course, is that it's a hand wash only yarn and I wouldn't even try to machine wash it on the gentle cycle! I knew I wanted to do something to show the stripes and brought my LK150 up to the kitchen last summer to try this out while the kids played outside. I had to swatch quite a bit to get the right row:stitch ratio of increases, which is different than if I was doing it in garter stitch. I liked the use of eyelets for the bottom increases.

Despite getting the ratio to make it square, the edge stitches on the side were tight and the fabric was ripply. Blocking could have helped....but I prefer to knit an item without having to rely on blocking (unless it's lace).

I wanted it to be a slightly set in sleeve, a modified drop shoulder. I figured out how to do it...but it looked a little weird.

I had the back done, and was working on the front, getting ready to cast off stitches for the neckline, when I took it off on waste yarn so the table and machine could go back downstairs. Once an item if off the machine....it doesn't always go back on!

I've been swatching and trying to figure out what this yarn wants to be. I tried a big gauge Brioche stitch sweater from Interweave Knits....but the texture (it wasn't a Brioche Rib) made the fabric quite thick, and I didn't think I needed a thick layer over my thick self. I swatched "Tailored Scallops" from Interweave's "Lace Style" book. I really like that swatch, but I'm hesitant cause I wanted to do something to show the stripes in an interesting way. I looked through my machine knitting books and couldn't find anything that meets the gauge. I could just do something simple and cozy, and go with the horizontal stripes....

Any suggestions?