My daughter and I made her quilt 15 years ago with precious moments coloring book pages. we colored pictures on squares with fabric markers. It has held up, the blanket binding wore out, but the colors are still nice. They do bleed a little while coloring, , so keep that in mind with your edges. She loved doing it with me, and it has been washed repeatedly over the years.
I also did a Christmas table cloth that way. Each child in the family got to color a picture in the tablecloth. I still use it.