You can use any shape. It doesn't have to be a bunny. Just trace a shape or cookie cutter. This would be cute for any holiday, just use an appropriate cookie cutter to trace and cut out the shape, then whatever yarn works best for that holiday!
Display bits of fabric that you like instead of keeping it in a box. Fabric is art in itself. You can find embroidery hoops all the time at garage sales and thrift shops! Maybe even paint the hoops to give a little color to the fabric hoop wall!