I think it's a lovely idea. I wish someone would put the effort in to make me a gift for Christmas! I am making placemats and bordered towels for Christmas gifts
I just finished a pillowcase cover and I used iron-on Pellon, the result was great, it gave a nice substance to the piece, was easy to sew and not too stiff! Also, for some reason it seemed to make it easier to iron after it was assembled.