I swear by the swaddle. Koala Kuddles--a new 100% cotton muslin blanket from Australia--provides an A+ swaddle and meets Momtrends' style standards.
Muslin is an open weave of cotton. The breathable fabric minimizes the risk of baby over-heating. And muslin has a texture that is somewhat stretchy, allowing it to create a snug wrap around baby. Tightly wrapping baby for sleep worked wonders for us--I think it's a key component of learning good sleeping habits. Beyond the swaddle, these 39" x 39" blankets make great lightweight covers when the weather turns warm and can serve as a little shield when baby naps in the stroller.
The mom-owned business is based out of Austin and puts a great deal of care and effort into packaging and production. The blankets are printed with prints that lend themselves to boys or girls. Blankets come in sets of three (my pick is the Australian animals) for $29.95.