When I was growing up, my mom did that -- except I think they were crocheted. She had every member of our family pick out two colors...mine was two shades of blue, my sister's was red and white, my brother's was blue and gold (U of M!) and the family room one was brown and orange (guess what decade I grew up in?).
The afghans were kind of holey looking when made in the main color, then she would weave through the complimentary color from one end to another, and it formed the fringe on the short ends. For about 6 months it seemed there was always an afghan covering our dining room table.