Cousin NAGLAR

This is another design from Knitting Workshop, one of EZ's seven (SEVEN!) options for a seamless yoke/shoulder. If you're not familiar with the pattern it's kind of hard to explain. You knit up to the armpits and start increasing at 4 raglan points. When you have enough sts you knit the sleeves down, graft the shoulders, and knit up the neck. Bizarre but brilliant.

This is a great design for babies and young kids because it's a no-steek, no extra math, open-shoulder pullover. Graft one shoulder, put a button band on the other, and poof! A sweater to fit over any kid's head. LOVE IT! Here we are, one shoulder grafted, the rest of the sts waiting for their neck treatment.
But I have a small problem. It's waving at me.
I'm not sure why the sleeves are angling UP. I can think of 2 possible reasons
1. I missed a few increases on the body, but not the sleeves.
2. My yarn is extremely over-spun. I inherited a sackful of homespun from my aunt and it's really wiry. I've never knit with anything like this before and I'm not sure how it effects the knitting, and how much it might relax in the wash.

Yuck, huh? I'm trying to use it up to make stash space.

Should I frog and try some other yarn?
Should I frog and try to fix the sleeves?
Would decreasing on the top of the sleeve help?
If anyone else has ever knit this design, please give me your input! I could use all the help I can get! Thanks!

PS: Thank you all for your wonderful comments about the Ribwarmer. My mom got it for her birthday today and hasn't taken it off yet! For the curious, here is a picture of the one-piece-back with the double mitre.