I have wrapped small gifts in scraps. Fabric flowers also make nice embellishments for larger wrapped gifts. I dislike the idea of commercial gift wrap--it's just paper that is meant to be torn up and thrown away! It boggles my mind the amount of money it can cost. So I always wrap gifts in plain brown paper or white tissue and decorate it with yarn, ribbons, fabric scraps, twine, orphan buttons, etc. My brown-paper Christmas packages with red, white, and green trims are always a hit. ;)
If you do embroidery, subtle prints can make really beautiful backgrounds for stitching. Bolder prints can stand on their own, with embroidered embellishment.