I gotta say my love is still with felt. It is actually very easy to manipulate but it does have it's down side. But, I guess no harm in trying new things and materials.
New found love : Perler Beads
Bought these babies in Ikea kids section. All you need is the drawing, an iron, wax paper, beads and the board, you got yourself a lots of fun! I've made a Union Jack flag for my swap partner and a felt skull for her daughther in "We Luv Surprise" swap in Swap-bot. And some others like one-up mushroom, love shapies and etc.
Union Jack for Diana
This is my first one, and the heat was too much and uneven, i melted most part of the heart.
Perler beads are somewhat versatile, you can make them into coaster, frigde magnet, pendant or even earrings. Some even make into a card holder, spotted at Geek Crafts.