I've made blankets this way but I never thought to stuff them and make a dog bed! Would work as a floor pillow for kids' reading nook in the playroom. And I don't have a dog, so a floor pillow for baby would be good!
DIY a pet's bed, or a place for the dolls or stuffed animals to sit, or even a toddler chair if some foam is used to lift the seat! ---- Both our cats and dog love an edge around a bed to snuggle into or rest their head on.