You could dye it and then use it to needle felt embellishments onto things. You could take up selling large Waldorf dolls and use it for stuffing. You could use it to stuff pillows, quilts, etc.
HTH!
Oh, I forgot to say, if I was you, I'd try using conditioner on it before carding it. I really haven't had any experience doing this with wool, but have a dd with ridiculously curly hair that matts up while she's sleeping and because she has such a sensitive scalp and runs away from me whenever I have a brush in my hand, sometimes it's a couple of days between brushings and conditioner is the *only* way I can get a brush through her hair. So, I can only guess it might be similar, based on my experience with both felted wool and her hair
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