Remember the major fail here? I decided I’d try to fix it.
I should probably have taken the seams apart, tried to gather the cap sleeves more, etc. But instead, I just chopped off part of the top of the sleeve, and chopped off about two inches off the side. All without ripping any seams out. It was a lot faster that way. And I actually think it turn out really nicely. It’s something I’d put on the baby girl to go into public. The would-you-go-into-public-with-this litmus test.
The cap sleeves still pouf up a bit, so it still looks like a cap sleeve, but it's not as poufy as it used to be. I’d say that’s a successful fix!