The bag is felted! A scant 10 minutes in the washer and it shrunk up just beautifully. It isn't as tall as I'd planned, but that is so okay with me. My last felting project ended a bit disastrously, so this is a treat. I have no place to hang it, so I draped it over the computer chair.
Its shape is fine and it's nice and deep. The straps are longer than I thought they'd be, which is great because I got really sick of knitting them and bound off before I thought they'd be long enough for what I wanted. The color is lovely, blue with lighter flecks throughout. Paton's Classic Merino Wool in Denim Marl is nice for felting.
I'm tickled pink! After drying, all I gotta do is attatch the D rings for the adjustable strap and flap closure. Drying will take a while, though. I did let it spin a bit in the washer to get most of the water out, which seems to not have affected the shaping at all. Who said you shouldn't spin felted things? They were a little off. *wink*