Some people have had great success with putting the little snippits out for birds to make nests with. I have never had any luck with that, they don't seem to like my scraps or maybe it is my mode of offering. I tried putting them in a suet cage and didn't ever see them take a piece. Then I put them in one of those mesh bags like onions come in and hang it out, again it just turned into a disgusting mess when it rained so I tossed it. They would rather pick dog hair and blanket fuzz off the dog blanket hanging on the clothesline!
I suppose you could try your hand at "confetti quilting"
They do make great stuffing. I got over the "I can't bring myself to throw it away". I toss anything smaller than 1" x 1 1/2"
Snippits of fancy threads I have seen people make scarves out of them doing tons of FMQ on water soluble stabilizer with the thread snippits in between. You have to make sure your FMQ is tiny and tight (like pebbling no bigger than 1/4") to ensure you catch the snippit in a stitch. In my mind that is using a whole lot of good thread, time and effort to make something out of trash that sets off any frugality of it. Unless of course you love the scarf and it ends up being drop dead gorgeous.
At some point we have to let go of some of the clutter.