One reason I got back into quilting was to recycle fabric.
Made a series of jeans quilts in '08 & '09. Extra fleece becomes winter scarves. Batting/fleece scraps become dust cloths (like a reusable Swiffer), and flannel sheets - a design wall. I've seen quilts made from t-shirts, sweaters - even silk ties.
The creative quilting/crafting community is an untapped resource. Let's see how many ways we can find to recycle fabric in 2010. I've decided to start a log of my recycling activities for the new year (nine dust cloths made so far). Let's make it a friendly competition!