I've just interviewed stiX of Outdoor Knit (aka the red headed devil child's geeky mother) for a story on their work decorating our glorious city with even more glorious knitting and craft. Pretty great. They're the people behind the "It Will All Be Ok" cross stitched into a wire fence on the bypass.
Check out these amazing graffiti knitting projects:
This beauty by Carol Hummel.
The International Fiber Collaborative beautified an old gas station.