The Alphabet Pillows are finally here from New Arrivals Inc. They are 12" square and include an insert for $48 a piece. Pretty reasonable and three cute color options: Blue/Green, Khaki/Chocolate & Pink/Green.
I also just saw this cute Monogrammed Wall Plaque. They are quite large which is nice, spanning just about 24". And hung high enough (for safety reasons), they would look nice above a crib.