I found this great site today a machine embroidery site. Wow has she got some lovely patterns, on her site she has a free pattern where she uses the thread ends that we cut off from sewing, embroidering, quilting etc. She sandwiches them together between 2 pieces of soluble stabilizer and free motion stitches over the threads to make a lovely fabric.
You can check it out here. http://www.masterpiece-embroidery.com/machine-embroidery-designs.html I think this would also be great with all those tiny bits of fabric that you end up with as well that aren't quite big enough to use in a scrappy quilt but you could make a lovely confetti fabric especially if you use the same colour blends in the made fabric. Will have to give this a try.
What recycling ideas do you have for your scraps.