I recently taught a class about what to do with these "useless" fabric scraps. Some of the ideas have already been brought up, such as mini blocks (log cabin or tiny paper pieced are good), and the wrapped bowls. We also make fabric beads, scrappy trim (done in a "figure 8" over fabric or ribbon), "toothbrush rugs", and all kinds of accents for applique. if you have the room to keep it for the time being, don't throw it away!