I used 'suede cloth' on a large Teddy Bear applique in a baby quilt many years ago. I remember it sewed very easily - no raveling, and anything to worry about. I think I was extra careful when pressing it - didn't want to scorch the 'suede'. I zigzag/satin stitched the edges down. I don't think I had a lot of quilting on the applique though. More echoing around the applique than on it.
Don't know how it would mix as far as piecing it w/ cottons. You could always make a test block - something simple like a 9 patch, and then wash it to see how it behaves. =)
Good Luck!
Donna Mc