What's Wrong With This Picture?

Okay, this is a test for all you knitters out there. I've been working on this little hoodie for my niece for the last month, and I was very happy to finish knitting the second sleeve this morning. Obviously I still have to seam it together. My niece is due on June 1, so I thought I had just enough time to finish the seams and get it in the mail. Not!

As I was contemplating how to start sewing it together, it suddenly dawned on me that I made a very big mistake in the knitting. Anybody see the problem?