I would never personally even try it! Unused dryer sheets would get chemicals on your fabric, and used ones come out of the dryer wrinkled so ironing them would be necessary (time consuming even if they didn't stick to the iron!)
Yes, paper has to be removed, but I've been pleased with pages from old telephone books. One project needed lots of string blocks of near- and off-white, and I had no ink from the pages on the fabric.