To frog or not to frog

I think I'm going to frog.  For the non-knitters - that means to basically undo my project.  Sometimes it means just going back a few stitches or a few rows.  In this instance, I think I'm frogging the whole project.  I like the yarn.  I like the pattern.  I like them together.  What I don't like is the gauge at which I'm knitting it.  I started this project a couple of years ago when I first took up knitting again - and took it up seriously.  I still had a lot to learn - not that I don't still have a lot to learn - but I know a lot more know than I did some 3 years ago when I started this project.  (Note - I just went and looked at my project page on ravelry and I started it almost 3 years ago to the day.)  So, it's been sitting there, I decided to take it back up again.  It's a wrap I started for my mother-in-law.  I put it aside when I realized that I could not finish all the projects I had planned for Christmas, so some things had to be back-burnered.  It was a long burner!  Anyway - here's what I have learned - if you substitute a different weight yarn in a pattern, you may want to increase the needle size accordingly.  This pattern called for fingering weight yarn.  I decided to use DK weight.  Thing is, I used the needle size recommended in the pattern, bur remember the pattern is for fingering weight yarn.  I should have increased the size of my needle.  The gauge at which this is knitting up will not get me the nice airy effect of the lace pattern that I would like.  So, I'm going to frog this.  The next real question is do I re-knit with a larger size needle or do I put the yarn towards another project.  Last Christmas, my MIL showed me a shrug she had and asked me if I could knit her another one like it.  The one she has is a very simple rectangle, just seamed to create armholes.  So, I think my best bet is to go forward and knit her the shrug she requested.  If I can reuse this DK yarn for that - cool, it's a color I know she likes.  Otherwise, I will set this yarn aside and decide what to do with it that later and just get some other lovely yarn for the shrug.