Felted Bag Disaster...:(

So, I worked really hard on this felted bag, did it in my favorite colors, striped it, everything. Well, now I have HUGE holes it in from where I joined my colors. Like, huge, most likely unrepairable holes. So, my options right now are:

1. Try to stitch up the holes.
2. Cut more holes in the bag and line it. Make it have a "worn" look.
   
3. Cut off the edge where the holes are and then restitch that edge.

I'm thinking option number 3 is my best option. I'm already going to have to cut off the straps and figure something else out. The straps were my fault though. I made them longer than the pattern actually said to, but I thought that it would be okay because it was supposed to be a huge bag. The bag to me looks smaller than the pattern said and...well, I'll figure something out.

Has anyone got ANY ideas for me?!