Tough one. I'd guess they assume because you are male you prefer flannel fabrics. ALL fabric is usefull in some shape or form. Perhaps you could use some of the fabric to make lap quilts & donate them to your local cancer center, or make dog beds & donate them to your local SPCA. As for the scotty dog applique'....never say never....until you have tried it....ask your wife to work on it with you. Make a list of fabrics/thread/notions/etc you prefer & have your wife spread the word.
Good luck