I have used pretty small pieces of fabric for ornaments.
Another option is to make paper (as if you had the time or interest).
I am also planning on throwing the cotton batting out for the birds this spring, pieces that I did not use for stuffing. I know it will be used that way 'cause I've seen it.
Which brings up a question: If you use left-over batting, do you shred it or just stuff the whole strips into what you've made, like a stuffed pig?