I don't turn down good, cotton fabric if it's being offered for free. I figure even the really ugly and unwanted stuff will prove useful eventually.
Case in point -
I had this project panel for a teddy bear themed vest - from the '90's.
This blue bit came from a stuffed whale plushie project panel.
This was a cast-off piece of yardage from when a friend cleaned out her basement. It's not ugly, but it's not super-trendy either.
A few more scraps and here we have a fun little guy to eat lunch with. All my bibs are made from whatever fabric I have on hand. I find that it makes me more creative to improvise with what's available instead of going out and buying new materials for a specific project.
His friends are for sale in my Etsy Shop.