We got quite a few for our first DD, and several for our 2nd, as well. I kept the ones that were handmade by family members and eventually ended up giving away the rest.
One of my DDs is really into dolls and likes to use them when she plays pretend with her dolls. I also used them as covers in the stroller when outside on cool days, something for baby to lay on when spending time on the floor, that sort of thing. Never in the crib until they were closer to 18mo old.