Eveel- Way to go on making 15 pieces of bedding and 17 toys! That's awesome!
I don't think you're feelings are misplaced- it is tough to dedicate your time to something and then find out that it won't be used how you planned.
It could be possible that the needs of the shelter changed since you first spoke to the lady (maybe they received another donation after you first spoke with her). So, as heartbreaking as it feels, at least she didn't say, "Oh, we're not taking blankets anymore. We have enough for now!" Take heart that your items will still benefit the animals at the shelter by being sold. And, they'll actually help more animals that way: the animals that receive your gifts of love, and the animals that benefit from the money raised from their sale. It's a two-fer!
Be proud of what you accomplished- you did a great thing!