There is a craft blog that I read and the bloggers have fondness for wool felt, so lots of their projects involve it.http://www.weefolkart.com
I love wool felt too. I have made the birthday crowns for my kids and others, I make little gnome people and use the wool for the clothing. I made an entire advent calendar
out of wool felt (so cool). The felt is nice to work with because it doesn't fray and you can just cut and embroider. I also like to use wool felt to make felt play food.