What about turning some of them into coasters?

a friend of mine has some really cute ones. theyre made up of cloth with some kinda mesh like stuff in the middle of them to give them body an weight but theres many diff ways of making them. Yahoo/Google is ones best friend an ones enemy sometimes... just saying LOL

heres a couple of sites explaining how to make fabric coasters an one for table cloth ones. the table cloth one maybe more in the ball park material wise.
an heres one that explains how to make tile coasters dont see why fabric wouldnt work with the way its explained if anyone wants to venture it.

they both look fun to make but im all thumbs

i like the pillow idea too ^^

ive also seen some turned into baby bonnets