I just did a deep dive on the blanket. There is lots of info out there on it, much of which cannot be discussed here due to ToS. I have to admit I kind of dismissed it before. It just seemed like a red herring to me. But the more I look into it the stranger it becomes.
So let's review the facts as we know them:
Lilly had a favorite blanket that she didn't want anymore. DM used it to stuff a crack around the door to stop a draft. He didn't need the whole blanket, so he tore off a piece. Later on the weather warmed up so MBM removed the blanket from the door and put it in a trash bag. So it would appear that this is the origin of the piece of blanket. One would assume the piece that was found is the piece that Daniel ripped off.
The incredible part is that somehow that piece of blanket ended up a kilometer down the road, around a corner, 6 feet up in the air, hanging on a tree branch. How? How could it be there if somebody didn't put it there? Why would anybody put it there?
I can think of 3 possibilities...
1. The wind blew it there. Highly unlikely. Sure the wind could blow it down the road but surely it would get hung up well before it was 1 km away. Plus it would not end up 6 feet off the ground. Unless they had a hurricane. (They did not.)
2. A good samaritan found it and put it there so the owner could find it. Again, that seems highly unlikely. A ripped off piece of blanket it obviously trash. Nobody would see it as anything other than trash. One would also hope that if a good samaritan did put it in the tree they would have come forward and said so.
3. Perp put it there. Why would they put it there? As a taunt or to mislead the investigation. Then one also has to wonder: how did they get it? Could Lilly have found it and put it in her backpack? What did DM do with the piece that he ripped off the blanket?
Think about it: this wasn't hanging in a tree somewhere out of sight. It was hanging from a tree right by the side of the road. Where somebody would be sure to see it. Making it look very planted.
In any case, using dashcam videos the RCMP should have been able to establish roughly when the piece appeared, I would hope. This seems like it is definitely related to the case. It didn't just randomly end up in that tree, imho, somebody put it there. And that someone sure seems like it would have been the perp. It does seem like a very strange thing to do, but how else would it have ended up in that tree?
This also, imho, completely eliminates the possibility that the kids were just lost. What? A piece of Lilly's blanket just coincidentally ended up in a tree 1km down the road on the exact same day the kids became lost in the woods? That doesn't seem very likely.