That's a really interesting project (in the way of dealing with the term). It's well executed. Until I read the description I was thinking "hmm.. the left side looks like there was more time spent on it XD
This is absolutely gorgeous (not like that hasn't been already said). You should look into school craft fairs in your area for a market for it. Specifically you should look up a Waldorf school in your area. Waldorf is a private elementary (sometimes secondary too) school that's all crafty and artsy.. they have craft fairs for children in november and may. I can see this being an appropriate craft for one of these events. Probly grouping up with a crafty friend or two would justify the table renting fee.
For felt (I haven't read all of this thread so the enquiry may have already been answered) I know fabricland has felt by the meter though how much it would cost I don't know. It should be near the batting by the meter (or under the cutting counters like where you'd find krinelin).