i've used it for wall hangings and it works great.
i did an art quilt of cotton and silk on to felt as the background and then i used another piece of felt for the backing and cut it about a 1/2 inch larger then the piece.
i used pinking shears to cut the felt backing.
it served 2 purposes - it covered the endless stitches from attaching beads/buttons/etc and by pinking it i didn't have to put on a binding.
i attached the felt backing to the felt art piece with a fancy stitch on my machine.