I've never had any trouble with Homespun "looking worn"...my years-old shawl still gets compliments every time I wear it. As far as holding shape, no, it doesn't; it's intended for things that drape. It never will take any kind of hard shape because that's not the nature of the yarn--poofy sleeves on a sweater, stiff brims on caps, etc. are never going to happen with HS alone (though you might be able to strand it with wool and felt the wool.)
Suzeeq is right about it, or any other bulky, if it's knitted too tightly. The shawl I'm working on right now is on 13s, and even though I'm a rather loose knitter it looks right. I can't imagine what it would look like on 10s, but it would be a bear to work with.