Just made a sweater out of that (same color, even!) for a nephew. Personally, I just can't get into the feel of the stuff - but I know my SIL would hate all-wool, and he IS a toddler after all. I think I'd make something that's likely to need frequent washing. Dog sweater?
You can use that for socks - they might not fit in your sneakers, but they might fit in your birks or they'd be comfy for around the house. I know socknitters has a chart somewhere of how to search for sock patterns by weight. Lion Brand has a pattern here: http://cache.lionbrand.com/patterns/kwes-socks.html
I have some of the regular woolease and I was planning to make hooded "sweatshirts" for my boys. Then I asked my older son, and he was not keen on the idea, and instead asked if I would knit him a vest. So, vests it is. I should still have enough left to make them socks, and they can't be much thicker than the commercial insulated socks they wear all the time (including in the summer, in Phoenix