I came across this site through ravelry and think this is just such a neat and unique idea. If it isn't unique - I've never seen it before - and I think its a neat idea for knitting. Not sure if you could do this on handknit sweaters that aren't felted. Artist Sara Rosensweet uses vintage adult sweaters and then cuts them up and makes them into children's sweaters. She was featured on Martha Stewart and this link is a video of her segment on Martha. A good thing indeed...she also has a shop on Etsy.