Wow, what an interesting thread and responses. I think for most quilters, the thought of taking quilting fabric (even if you don't like it) and using it to mop up paint, clean dirty floors, etc. is a sacrilege! I have to admit, I'm in that camp. It's not that I don't fully support your right to do with your stash as you please, but it does hurt a little to think of it.
(And since you can't hear inflections or see facial expression, know that my post is meant to be light-hearted, not critical.)
As for passing on fabric that you don't like to others, I have to say I don't find that elitist or wrong. Afterall, beauty truly is in the eye of the beholder. Just because I don't like it doesn't mean someone else won't. So why not pass it on to someone who might find the beauty in it that I just don't happen to see? In fact, that's just what I do when I clean out my stash and the recipient has always been pretty pleased, so I see it as a win/win!
