I would think the easiest way to finish the edges on the clothes is to use the birthing method. The clothes are all pretty simple, so just double it, sew right sides together, leave a hole and turn. There would be no raw edges and except for the velcro, it will hold up to laundering.
Felt won't hold up to laudering, but it would be fast to make simple things like pants, shirts and shoes. Then save the energy for the cute other things I've seen, like the gathered skirt.