The pillows from Paola at Atelier Pompadour in Italy are so unique and I love that they're one-of-a-kind and handmade. Using fabric and felt, her shop has many interesting offerings -- it's a great find to bookmark for gifts to give to someone who appreciates handmade with a graphic, modern sensibility. I personally adore the blue cars and would love to put this in a boy's room.
I'm not sure about the rest of Europe, but felt in Germany is huge... and has been a big trend in design for awhile. You can find seat cushions, pillows, hats, ornaments, just about anything and everything in felt. What about where you live, is it commonly used there as well? Paola also writes an inspiration blog (in English) from her home in Milan called the Creativity Channel. Great name for a great blog!
(images: atelier pompadour)