I use the wool from Goodwill garments in art quilts. I wash the garment in hot water...this will felt it....except thin wool like Pendleton skirts just wash up like flannel. I think it's a great way to get cool textiles. If I were a traditionalist, a wool quilt made up of squares (perhaps I think of squares because of memories from childhood!) would be awesome. A great snuggle blankie in the wintertime.
Have fun, and keep searching! For wool that is!