This video shows a new technology called lumalive that Philips is showcasing at IFA 2006 in Berlin. They are integrating LEDs into fabric and have already been in talks with people in advertising. Forgetting the fashion side of this for a second it could be useful in making safety gear. Hi-Vis jackets that emit their own light would be good, Or perhaps running shoes that flash so you can be seen at night. Personally i would like to have a pillow that slowly increases in brightness to simulate sunrise, apparently that is the best way to be woken up. The possibilities are endless and it's a really interesting concept.
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