Since I quilt, I do generate a lot of scrap fabric; scraps that are really not big enough to do anything significant with but too big to just throw away. So a few years ago, I decided to invent something worthwhile to do with my scraps. I make miniature rag dolls which were originally intended to be Christmas tree ornaments. Since I've made four quilts since the first of this year, it is time to use up some of the scraps I've created, which is why I have the array of little dolls, little dresses and various yarns all over my work space!
I also knit, as you know. This also generates scraps. With my yarn scraps, I knit baby headbands. In fact, I even wrote a tutorial so that you, too, can use up those end-of-skein bits of yarn (click HERE for that tutorial).
There are too many art forms to list, but I would bet that each and every one of them generate scrap, just as my passions do. I would love to hear about your medium and what creative ways you have developed to use up your scraps!