I guess the perennial back-to-school, new-dress urge hit me today because I finally dug it out, saw the sweater was really quite lovely and decided to do something with it.
First, I darned moth holes and hand-sewed patches over the elbows to hide stains and holes. I used a zig-zag lazy-daisy stitch for the elbow patches that seems as if it should be strong and stretchy. The hardest part was choosing a color for the patches (also from some other bits of old felted sweaters.) Eventually, I settled on an acid green.
I cut off the bottom of the sweater at the center of the waist shaping, and the top of the skirt where it was just a bit bigger than the sweater waist. With the side seams matched up, I sewed them together with a stretch stitch easing the skirt to fit the top. Now I needed some way to tie the colors of the elbow patches to the rest. After much messing about with buttons, ribbons, and leftover sweater bits, I settled on a rather simple flower. The center is a blue button sewn on with bright orange thread.