If you love the tea towel 'as is', then I like the lap quilt idea from QM -- add some borders, and I'd probably put a simple prairie point edging on it and enjoy it. Once made into a lap quilt and quilted (maybe some meandering quilting all over it), you won't have the wrinkling problem as when left the way it is. I always had to iron my tea towels (had a number from Australia) as they wrinkle so much.