I was talking to a lady at Joann's one day who was doing something similar for her preschool class. She had assembled many different textures and colors of fabric and was going to make books out of them. She even had some tulle or netting to use in there.
My only concern with the project would be launderability with all of the different fabrics. I guess you'd probably want to prewash everything as you would do with a quilt.