It looks great! The only way to use such a low density design on a towel is some form of embossing, knock-down stitches, or whatever a particular software calls it.
In the past I used Tull to get the result you have with the knockdown stitches. Does your machine create them? I noticed how it follows the outline well.
Ahhh...I think you have discovered the great benefit of knock down stitches....great job...