I started a wall hanging yesterday called "Fish Out of Water" that is raw edge applique...the pieces are spray basted to the background and then stitched 1/4 inch from the edges so that when finished and washed the background shows through as an outline, and the frayed edges of the fabric add texture...
Unfortunately, it's a kit that was put together by the store I purchased it at, and a couple of the pattern pieces are larger than the fabric provided for them! Also unfortunately, the store where I purchased it is about 4 hours away!! I sent an email... ~sigh~