This is a great wall art project using fabric scraps and embroidery hoops, from The Purl Bee. While this project just uses fabric swatches, you could certainly do some embroidery on your scraps to add even more visual interest.
Display bits of fabric that you like instead of keeping it in a box. Fabric is art in itself. You can find embroidery hoops all the time at garage sales and thrift shops! Maybe even paint the hoops to give a little color to the fabric hoop wall!