I really wanted to ask the question: Just what can't embroidery be applied to? Well, there are many things, of course... food... cars (but I'm working on that!)... pots and pans... so on and so forth.
My fairy house project started out last year as a project that did not involve embroidery whatsoever. Winter came and went and was not kind to the fairy house at all (I live in Canada... no big surprise). So, this summer, I ripped it all apart and had the crazy notion that I was going to cover the front wall of my fairy house with embroidered felt. If you're a frequent flyer to "Designs in Stitches" you should recognize the designs I chose to do. This started out as an old bird feeder that the squirrels chewed the hanging cord and it fell to the ground and busted up. It spent a couple of years taking up space in our garage until last year.
I used Modge Podge to glue the felt onto the front wall. After it had set, I used varnish to glue the wood shavings onto the sides and ended up applying a couple of layers of varnish to the embroidered felt as well.
Nothing more than whimsy, its not supposed to be the Ritz-Carlton in fairy-dom.
P.S. Just love the fairy house, great job and I'm sorry you have some little Arachnids boarding in there!!!!!