Okay, it's felted! Finito! Yeah!!!
I didn't follow the pattern
exactly -- in particular, the handles. But, should you have this project OTN or if you're thinking of making it, I'd use the handle pattern specified. Mine are decidedly wimpy compared to the substantial bag size. I also made the bag a good bit larger than detailed.
All in all, I'm happy. It took 3 hot-water washes and 2 thirty-minute runs through the dryer. The manos felted PERFECTLY. It has a traditional "felty" feel. The Peace Fleece and the brown "mystery" yarn... not so much. I can still see the stitches, and the more I washed/dried, the fuzzier it became.
Pictured here, it's holding a smidgen of my stash. Lots o' room! The handles (I-cord, BTW) are just long enough to sit on my shoulder.
Free time? What free time?
More socks (Lorna's Laces, Baltic Sea)
Tie-Front Cardigan (p. 71 VOGUE Knitting, Holiday 06)
Rose Cardigan (VOGUE Knitting, Winter 07)
Socks and socks and socks