I love this idea from Craft Gossip, turn the sleeve into a baby hat:
Make a quilt or a pillow- sew pieces together like these:Stretch them onto an embroidery hoop or picture frame for instant wall art. (via Betz White)
And finally, if you're really talented and ambitious, you can cut up a shirt and crochet it into a little creature:Now go- make something! And tell me if you do, I want to see it!