I have a little barkcloth problem myself. (Like a room of barkcloth) I have used it in quilts. And as quilt backing. And as curtains in my 1956 house.(the original purpose). And for cushions in my car. And and and.... Oh, and the one and only bag that I have made so far is made out of 1950's curtain fabric.(not barkcloth, but barkcloth era)
I love it all. I have two partial bolts of hawaiian barkcloth, one grey with pink and green fronds, and one yellow, with green and pink and grey. Also lots of still life and landscape, and of course, atomic.
Check out retrorenovations.com if you haven't yet. It's amazing. All things mid-mod.