I've used homespun on an Irish chain quilt for myself. I haven't washed it too many times yet, so I can't answer the fraying issue. It's wearing fine though. I picked one particular color for the back because it reminded me of something, but I couldn't think of what. I finally realized it looked a lot like the lining in my old Boy Scout sleeping bag.
I've also made a few shirts out of homespun. It feels a little like flannel, but its loose weave keeps it from getting too warm.
Tate