Yarn as giftwrap?

I've seen people suggest that dishcloths make wonderful wrapping for a bar of nice soap.  I use hand knit cloths to wash my face so I LOVE this idea!

I find I often use yarn to tie presents like ribbons.  I sometimes have ribbon in the house, but I ALWAYS have yarn in the house :)  I've knit an I-cord and tied it around ending in a shoelace bow and I've also used a chunky yarn and topped it with a pom-pom.  

As I finish wrapping the last of my 2011 Christmas presents, I wonder how other yarn lovers use yarn to wrap gifts.  I'd love to use it more often and share my love a yarn with those uninitiated.