I think that this is a really interesting concept or book, but because I don't knit, it was a little hard for me to say "wow, I will do this for sure." I do think that knitting something and then wet felting it would be cool, but neither is something I'm going to tackle anytime soon. My favourite project, the one that I could probably see myself doing, were the swirled round placemats with the cute little napkin ring baubles.
I think that, if I were a knitter, this would be a neat way to take it in a different direction. Especially as most of the projects work towards a smooth felted finish where you don't see the knitting stitches.