Aunt Lydia's rug yarn....worth knitting with?

My mom called to say there was a huge tube of this at Goodwill, I think she said 69 cents a skein.

I know I’ve seen it in the stores but didn’t bother groping it…I’m assuming it would be far too scratchy for garments, but what about bags or rugs or animal Snuggles other crafty things? I’m not even sure that is a super bargain price, I did a very brief search and saw some for 99 cents.

Is it cotton or wool? I’ve picked up the wool skeins of it at Goodwill and Salvation Army before. I use it for small felted items, such as coasters and such.

edit: Oh, wait. Come to think of it, I think what I have been getting is “tapestry yarn” (wool), rather than Aunt Lydia’s rug yarn (though I have bought that, too).