I just go to the Lion Brand site and they have a ton of projects using homespun. I made my dtr a capelet which is really cute, but I don't like the texture of the yarn. It's like it has a perm. So it's hard to see the stitches. I've also been told that it grows with washings. And unless you're willing to knot every fringe, it will shred unless you crochet loops for fringe (that was even harder to see than knitting). It's really soft and a lot of pretty colors and Joann's always seems to have it on sale.
I must admit that I loved the Martha poncho and was disappointed that it was done up in homespun. There has to be a reasonable subsitute for it.