I just finished my fist knitted and felted bag, using yarn I got at the thrift store! It was really chunky wool, so it knitted up in just a few evenings, but didn't felt as completely as I had expected. The fabric is still very strong, though. I just kind of changed colors as the spirit moved me.
Here's the thing: I think it's too plain-looking. I'm thinking of adding some vintage pink buttons around the rim or something. Or maybe some tassels on the side where the handles are tied together.
Please let me know what you think!