I love felt! It is inexpensive and perfect for the beginner crafter since it doesn't ravel. You can sew it, glue it or needle felt it together.
Remember colorforms? A creative mom to five children translated this idea into felt! You can see her creations at her etsy site: http://www.etsy.com/view_listing.php?ref=sr_gallery_8&listing_id=17408633 She said a do it yourself pattern was on her to do list, but could be awhile before it comes out. As a fellow mom of 5, I can understand that!
With a litle imagination--this (above) becomes this (below)!