At my spinning group I picked up an old Spring 1996 copy of Spin Off magazine which contains an article describing wistfully, the demise of the Weave-It loom. In the latest issue of Handwoven, there is an article which uses a similar rectangular loom to make a small shoulder bag.
Here are the two looms I successfully bought, sitting on top of the Spin Off article. The 4" wooden one is an older model than the plastic 2" loom.
There is a fabulous website - eloomanation.com - which allows you to download old pattern books for the Weave-it, including patterns for baby clothes, coats and suits, along with afghans and other household items. Check out the blog and links also, for some really advanced uses for the woven squares.
Here are my first squares made with Garnstudio's Vivaldi, a variegated 76% mohair, wool and polyamide mix yarn (rather hairy/itchy) which I bought on sale for £2 a ball at the InterKnit Cafe in Farnham on my recent visit.
I'm planning to make a throw, as large as the amount of yarn allows.