Here are some of my ideas. Knittable throw blankets, patchwork quilts, pillows, rugs, tablecloths, sweaters (for sims and pets), scarves, hats, mittens, doilies, Winterfest stockings, teddy bears, dolls, and sock monkeys. Blankets could be used to cover up with on couches when taking naps, and laid over laps in chairs.…
For gift giving, it would be nice to be able to gift a pregnant sim a knitted newborn blankie, hat, socks, or bib. For profitable crafting, sims should be able to open a retail store or open a stall (like the ones in city living, and jungle adventure) to sell their creations. For funny failures, it would be cute for elders…