My favorite pin cushion is actually a 5" x 7" picture frame. I removed the glass, of course, and took out the folding stand. I covered the stand with eight (8!) layers of quilt batting which I had cut to size. On top of that I laid a piece of sueded fabric and taped everything to the stand with duct tape. I mounted the stand with its batting a fabric covering into the frame. It stands there nicely next to my sewing machine. I can stitch along and pull a pin and stab it into the frame without even looking at it. The frame sits nicely on the cutting table when I need it there.
I used a plain frame, but I made one for a teacher friend using a frame which I decorated with buttons and bits of lace held in place with hot glue. Several of the ladies in the quilting classes I've attended have commented very favorably about how handy the picture frame pin cushion would be.