I would just remove the ribbon, and not say anything.

It would depend on your friend's personality of course, but I would be surprised if they said anything about it, even if they did notice ... do you think it's likely they would actually say anything about it?

I'm glad some use has been able to come from it, though! I have been given some of the most ugly photo frames known to man, and there is no way to salvage them at all ... they're just ugly, and sit in their boxes in our attic ...