Well, pink is pink and blue is blue - no matter the pattern on the fabric, and as Bonnie Hunter says, "If it's still ugly, you just didn't cut it small enough!"
So, I've started some string quilt projects. You can cut the fabric down as small as you like, and if you group fabrics by color, it's easy to make a fresh, pretty quilt out of some UGLY fabric.
I also used this idea for some project panels that someone gave me. Remember those cutsie, crafty vests from the 90's?
I had some project panels for several of those. Plus some panels to make a stuffed dinosaur and a really ugly fish pillow - there was also a sort-of-pretty stuffed doll pillow, but kids don't ever really play with those. I wasn't terribly inspired to make any vests or dolls, but if you start with this -
- Then cut it into bits...
... Then sew it into a spiderweb block...
... You can make a pretty quilt out of ugly fabrics.
Here are a few other ways I use up ugly fabric: