hmm...i have never used that yarn but it looks like Lion's Homespun yarn. I am not sure that is best for something that is going to get a lot of use. They would be really soft initially but i think they would eventually start leaving stuff (fiber) on the dishes and stuff. i might be wrong about that though since it can be machine washed. just not sure.
Pima cotton is alot softer than regular Lily Sugar n Cream type cotton. I would think the Crayon would make nice FACE cloths, but Im not sure about dish cloths, as you may want something a little "scrubbier" there.
Maybe for those petal washclothes, i agree, not sturdy enough for dishclothes!