What to do with scraps?

There's the million dollar question! My scraps have been accumulating and at one time I bought some scraps so I could save them for a strip quilt. I've made some blocks here and there but it's still a WIP. I'd like to eventually make a picnic quilt out of it. There's tons of bright and cheerful prints.

Then there are those pesky little scraps so I thought - why not cut them into 2 inch squares? I was shopping in the States this past week and saw Accuquilt's 2 inch square die....now I know it's being lazy, but I bought it! I was in Joann's, they had a sale, need I say more? :)

This afternoon I decided I would take a handful of scraps, run them through the Accuquilt and voila, here they are. These are literally just a handful - paying no attention to colors, patterns, nothing.

I'd love to hear people's thoughts on what kind of blocks/quilt to make. I do love a postage stamp quilt using a solid (I like white personally) to break up the patterns. That's just one thought....and then there's the color scheme to think of. I am partial to red, pink, orange and yellow....then there's always red and aquas and I've even seen red, light pinks and aquas which is pretty. What are your thoughts?

I leave you with one last question...can you identify this fabric for me?

I think it might match the crib sheet I just bought my little one from Dwell Studio (Paperdoll line). I'd like to make a matching crib skirt and thought the pinks might match because they're very light and subtle. I've also thought of a shot cotton or Moda Crossweave to change things up a bit. What do you think?