If someone you really, really loved gifted you something, but you didn’t like it, what would you do?

Because you are a sweetie. I have a basket in my home that I absolutely hate, but there it sits in my guest bedroom with quilts in it because I would never hurt the person who gifted it to me. I must be a coward too.

I'd do exactly the same as you. A close friend of mine bought me a candle holder that had these ugly little men dancing round in a ring on it and the candle sat in the middle. It was meant to be a circle of friendship, so a lovely sentiment but every time I looked at it, I thought 'that looks like part of a human sacrifice ritual'. I shut it in a cupboard lol.

Peoples good hearts are more important than their bad taste. I saw keep it out for her visits.

You're not a coward, you love her too much.

Here's what you do. While she's there tomorrow have the rug out and have a glass of wine with her. If she doesn't drink, then just have a glass of wine for yourself while she's thete, and then, while talking to her, walk over the rug with said glass of wine in your hand, and then "accidentally" the wine glass falls out of your hand, on to the rug, thus ruining the rug.
Now the rug is ruined.

Say thank you

I’d do exactly as you, I admit. There’s a painting of Neptune in the closet right now. It goes up when the artist, my favorite cousin, comes to visit.

You're kind. I'd probably keep it in an unseen room

My son would would be really upset

I'd do the same

I'd do the same

The same thing you've done, and not telling her how much you the dislike the rug is surely not cowardice.

The beautiful people that gift we say thank you for the gifts

He loves his grandma there is nothing he would do