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I do similar with baby blankets - the "inside" blanket is fleece, wrapped in a flannel blanket, diaper style. Always a hit at baby showers!
If you 1) hate to wrap, 2) want to save trees, 3) have a few bucks to spare, check out wrapsacks.com. You buy a pretty fabric sack to wrap your gift in. Each sack has a unique serial number. When you're ready to give your gift, you go online, register it, add some additional info (it's been a while since I did this), and give your gift. The recipient then logs in that they've received it, and then uses the bag to wrap one of THEIR gifts. And the bag gets passed along from one person to the next, going around the country...and the world.
I buy old scarves at the thrift store that are still in good shape and they make beautiful wrap. You can use multiple scarves and/or some ribbon to make a lovely presentation. My friends all know that if they do not want the scarf they just give it back to me and I use it on the next gift. My mom thought the silk scarf that I had wrapped around a picture frame WAS the gift! I got this idea out of a Martha Stewart magazine.
If you wrap gifts for a crafter or sewer, use fabric to wrap the gift and tie with a pretty ribbon. I did that recently for my daughter and she thought it was a neat idea. It's like getting two gifts in one!
I also use cloth bags I've made. I also purchased assorted size Christmas Stockings, wine bags, Christmas boxes, and any thing which will hold a present. I made special gift tags and I save them from year to year. It's a breeze wrapping.