Agree, 8"x11" is larger than most mug rugs ... but smaller than a traditional placemat @ 12"x18".
To me, your 8"x11" would be a perfect size when serving a snack or simple lunch, such as a bowl of soup or a grilled cheese sandwich. Or to keep with your coffee theme ... a perfect size when having some coffee cake along with your coffee!
Or if you want placemats ... border your fabric with a solid or tonal fabric that coordinates to upsize to the traditional placemat.
Or if you want a table runner ... put them together with other fabrics for a fun runner!