This cracks me up. We used to make potholders like this at my grandmother's house during summer. Not that we were ever allowed to hold any actual pots. [Though when he was two or so, my brother did dance on her stove; the coiled heating elements seared spirals into the leather soles of his shoes. Good times.]
Crispina is a 20-year-old creative reuse company in Massachusetts that uses this classic weaving technique to make rugs. Depending on whose site you read, they are either made from recycled t-shirts [top], or recycled sweaters [above]. Maybe both, but not together. And they're available in sizes ranging from a bathmat to a room-sized area rug, 10x14.
Now if anyone sees a playpen in the shape of a giant, woven plastic Cub Scout neckerchief slide, don't keep it to yourself.
Pick your colorway or get a custom Crispina Potholder Rug at Romp [Brooklyn] or from Crispina, $23-26/sf. [via yokiddo.com, david's sweet, new, kid-related, wists spinoff from cribcandy]