I use boiled wool almost everyday for quilting projects- I love working with wool! boiled (felted) wool works great for candle mats, coasters, placemats, table toppers, purses, rugs, quilt appliques...the sky is the limit! in my mind-if you can make it with cotton, you can make it better with wool.
check out sites like ' the wooly lady' , 'sue spargo', 'primitive gatherings' , 'a couple of sisters designs' ; browse ' The Cotton Patch Quilt Shoppe' (in East Tawas, MI) website, they have pages & pages of wool projects to look at. search - Penny Rugs for more ideas-inspiration. there are tons of sites that feature wool projects.