I too had a bunch of double knit. Made lap robes for folks in our local nursing homes. Not only did the residents love them, the nurses and aides said that fabric would stand up to the hot water and numerous washings they had to endure. The fabric doesn't have to be cut up and turned into an actual quilt. Make them like a pillow case of sorts.. just two layers of fabric and stitched down all the way around.
Also have two double knit quilts my Mother made from scraps. They are warm, won't fade and stand up to washings. All in all, not a bad fabric. Just not most peoples first choice.
Let us know what you end up doing with your fabric.