Button animals! Would be adorable gift for a baby shower or decoration for a little one's room. Cute! Teddy Bear, Cat, Dog, etc. Even flowers or butterflies. Could use cookie cutter to trace shape onto felt. Cut out, glue buttons on. Apply to frame.
I like the idea of using a tension rod between the two shelves for a curtain to create a stage for puppet shows or talent performances or hide things before company comes over! Plus I'm pretty sure everything here is from IKEA!