NEED ADVICE

Okay, after I tried the dyeing experiment with the 4/8 wool, I realized that the yarn is much softer and fluffier after the washing process. Much more like the description on the website in fact. So. The embroidered jacket. I'm using 2/7 wool/alpaca, and it's not at all soft like I thought it would be. Then I had the brilliant idea that I should probably try wetting and drying the yarn to fluff it out.

So I tried doing that with some of it last night, and by golly, it's actually really soft. Double stranded, I can knit it on size 9 needles. As a comparison, I'd say it's less fluffy than the 4/8 (not a surprise considering it's 2 vs 4 ply), but definitely silkier than the 4/8. It's very nice on the knit side, harsher on the purl side.

I think this means I should rip out all the work I've done on the embroidered jacket so far. That's approximately 10000 stitches. TEN THOUSAND. Oh god, that sounds awful. But okay, I'll do it. Ok, so the problem is that the 2/7 single stranded on size 6 needles will meet the gauge for the embroidered jacket after washing and fluffing. But it's not nearly as soft or nice as when it's knit double stranded on size 9 needles. What should I do?

A. Knit something else with the 2/7 wool/alpaca and find a different yarn to use for the embroidered jacket. But what would I use??? The 4/8 washed is way too big. I'd probably have to get something thin from R&M...
B. Knit the embroidered jacket with the 2/7 single stranded.
C. Sob uncontrollably. Abandon everything.
D. Something less painful. Open to suggestions.