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I would only use Margaret with a nickname. I adore Maggie and would use it just for that. (Well and that it would honor my grandmother). I also like Meg and Greta.

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I kind of like Margaret. It feels very old and dated and heavy. A nickname keeps it young and fresh. I actually like Marguerite better. Maggie is a top contender for a second daughter (if we have one) and I would strongly consider both Margaret and Marguerite. I like Marguerite more but worry about people having difficulty spelling/pronouncing it. And I think most people find it more dated than Margaret.