Fabric on Demand is a print on demand service for fabric designers. I have not used this service but it appears to be fairly straight forward.
First of course you need to create a design. The file you submit to them has to be 150 dpi, 1200 x 1200 and 10 MB. They accept it in JPEG, TIFF, PNG, EPS, AI file formats
You have a choice of 5 fabrics and they state more fabrics are being introduced. The choice at the moment is between 100% Cotton, Poly/Cotton Broadcloth (35% cotton/65% poly), Fleece, Cotton Duck and Micro-Denier Suede.
After choosing fabric and uploading your design they will print the fabric for you.
Being a quilter I looked seriously at the cotton. The fabric prices are fairly hefty but they do print in small quantities so you could use their service to create parts of a special quilt. What about designing, printing and selling your own fabric? Unfortunately I don’t think it would be viable to print your own limited edition designer fabrics. I think the end cost to the customer would be simply too much.
That said I am sure there are plenty of personal uses particularly around times such as Christmas . Apart from quilts I was thinking about fabric to use as a cover on hand bound books, cushions, bags, and gift items like highly personlised Christmas stockings and the like. Also I think if you made fabric post cards you could print the back with name address lines and a place for a stamp etc.
You might want to investigate Fabric on Demand further and bookmark it as I am sure there are plenty of times their service will enable you to turn something mundane into something special.