I'm not sure I would cover it in fabric. I have two tables that I made from plywood sheets and after sanding, I just painted them. I did a couple coats and then spray coated them with a clear coating. I used a spray because I wanted to do several very light coats to build it up. I have used them for years and have no problem. I now use one for my craft table and have a very old (30+ years) cutting mat that works great for the measuring lines when cutting out foamcore and balsa wood. The fabric area one I lightly sanded a few years ago and sprayed one more clear coat on it. And I use this area almost every day - no problems. No matter what you decide to do, you do not have to use mod podge or wood glue for that matter. Any white glue will work and I almost always water it down. This applies to a decoupaged area or when I am working on my fairy/gnome houses.