Does anyone have ideas for scrap fleece. some of the pieces I have are as small as 4". Does anyone piece quilt with this??

You could use them for appliqués. They'd be great for any kind of fuzzy animal. I like to make stuffed blocks from different kinds of fabrics - the different textures make things interesting for babies. :)

Little Monster stuffed toys/bean bags. Simply two odd shapes-squares, rectangles, triangles - sewn together and stuffed. You can add scraps for arms, legs , ears etc. in seams. Sew on faces of fabric or felt. Make cute mascots or pet toys. For baby toys don't use buttons in faces though.