yes you can use them, in several ways. Look into liberally covering iron-on interfacing with threads, wools, fine strips or diced fabric - [we here call this confetti ] ribbons, laces etc. Also some use them on solvy or other water soluble, place another sheet on top, and stitch well over the lot free-hand with pretty machine embroidery threads. After that, wash out the solvy, and you will end up with something like a scarf, or if you do enough and thick enough, you can make your own fabric.
Thanks Gay - this is exactly the sort of thing I was looking for.