I cut lots and lots of flannels squares for backing, batting, and tops of flannel rag quilts and to sell on my ebay store (here is my plug: http://stores.shop.ebay.com/Beverlie-Boutique-Quilt-Squares ). So I always have tons of selvage ends that range from one inch to about three inches. These little pieces are so fun to make scrappy quilts, which also double as eye spy quilts. Here is the start of a stacked coin quilt make with my flannel scraps. I am in the process of quilting it by simply using a wavy stitch down every seam then down the middle of each column. I find this is the perfect amount of quilting, giving it that ribbon affect. It helps it retain its softness on the back and the flexibility and cuddleness you'd expect from flannel.
If you are interested in purchasing these scraps, I have small priority boxes available with either boy or girl flannel ends, both solids and prints. Most are 6.5" long and range from one inch to three inches in width. Each box is more than enough to create alternating columns for a baby quilt in this style. Just email and let me know.