JulieR - while I think you make some good points, fabric is not the same as a DVD. The DVD is a finished product. The fabric is a medium for a certain art form - quilts or fabric arts. Would you say that someone who has produced an oil painting needs to pay royalties to the oil paint manufacturer? Does a potter need to give some of his profits other than the initial costs of the glaze or clay to the suppliers? It is a bit of a grey area, but if one wishes to make money by selling a design - whether it be a Disney Logo or a nice floral, one has to be allowed to have it used. Otherwise, don't sell it.
That said, I will make a point of avoiding copyright fabrics, not because I ever sell anything (I'm not that good) but on general principles.