One letter on a cushion eg an A for someone called Anne

I will use it on bags or sweatshirts, but you could make the letters into words to spell out anything you want as a banner for a Christmas decoration

quilt blocks - not just on cotton but maybe fleece or rag type quilts. Banners are a great suggestion also - very popular now with triangular flags for each letter, or a mantel hanger over a fireplace. Look on Better Homes and Gardens site, decorating for the holidays and you will see them there.
Shirts - enclosing a picture of some beautiful shirts with Mary Britts Winter Alphabet. I did not do the embroidery but love the look of it.

more ideas - Christmas stockings, special ornaments with just their first initial, door hanger pillows, pillowcases, dorm stuff, scarves or hats. You don't have to use the whole alphabet at one time. It would be too much to do a namewith all the fancy letters. Five Star Fonts has some free lower case letters that would serve as the rest of the name -like on the tshirts picture.

I do not collect Alphabets and when I started here asked almost the same question. One of the answers was. "Save them for a rainy Day" and "File them away".