I've crocheted with plastic shopping bags cut into loops and tied together into 1 long strip, and I've knit with cotton fabric cut into strips. I've never used anything as heavy as denium or leather strips, though. I knit a vest with the cotton strips and then sewed a matching skirt.
With the cotton, I cut it into 1/2" strips on the diagonal, keeping it as a continuous strip by not cutting thru the edge, but stopping 1/2" from the edge, then going back the other way. I only had scissors so that's what I used.
Not really sure what you mean by 'jeans lace' - but if you can cut it into strips, I don't see why you can't knit with it. The bulkier the fabric, the larger needle size you'd need. I can't help but visualize leather being too bulky, though.
Good luck with your project - let us know what you decide to do and how it turns out.
Mirl56 at Ravelry, too.
Learn from the mistakes of others. You canít live long enough to make them all yourself. Eleanor Roosevelt
Lady Feb Sweater
more shawlettes, socks