I've made cat toys and pincushions with roving in the washer. How can I describe roving....it's the wool before it's spun to make yarn. I've done little with needle felting, but if you take the unspun wool and shape and work it with a felting needle a little, then stick it in an old knee high or sock, then wash on hot, the whole thing felts together. It's really cool....the cat just loves his toy, but he keeps taking the pincushion too. I finally had to put in my sewing machine case for classes.
I'm a bit 3 deminsionally challenged when it comes to knitting or crocheting so I don't have any experience felting things like purses, but the effect is just amazing!! I hadn't thought about an old wool blanket...if anyone tries that tell us how it turns out!!