You have heard of the phrase "color outside the lines". I look at binding as that window of opportunity to break the rules, jump in the puddles and color outside of the lines.
Remember that quilting is art and art is subjective. So seize the moment and take liberty with your choice. I like to use brightly colored #12 pearl cotton and big stitch quilting, it makes a BIG statement in a small space. A blanket stitch with pearl cotton thread also makes a nice looking binding. On more traditional quilts, which I seldom make, a more traditional hand stitched binding is preferred.
This would be a good time to test out which width of binding looks best on your quilt. On baby quilts or small lap quilts I like to cut my binding 2". I feel that the small quilts can look disproportional with wide binding. I have been know to cut binding 3.5" for minky and cuddle quilts. A wider cut border helps to get over the bulk of minky and cuddle fabric and creates a nice bordered look.
Hand stitching or machine stitching is totally a personal choice. There are lots of great ways to machine stitch. Remember when hand stitching sew the binding on the top and roll to the back; when machine stitching sew the binding on the back and roll to the front. Don't be afraid to try your machines decorative stitches when machine binding.
I hope this gives you the courage to try a few non-traditional binding methods and to color outside the lines with your fabric choice.