Of course there are all types of needlework. Embroidery-as-tattoo is just a perfect marraige of needle crafts to make a rather witty combo -don't you find, darling? (Oh yes. Indeed.) I've long admired the extensive embroidery work Sherri and Andrea put onto a bunch of dollies. Check out the Tattoo Baby Doll Project over there at Dainty Time.
Toaster Purse! Okay, so this isn't entirely related to embroidery, but there's a little stitched smile on that piece of toast, so it qualifies. Ich luff this purse. I also love Heidi's other purses and thingers at My Paper Crane. Don't miss the Dead Cat purse, the Inhaler purse, and of course you can buy a lot of 100 paper cranes. How very sweet.
My mother gave me a stack of these old Needlecraft magazines from the 20's and 30's. They painstakingly detail stitching tips, techniques and offer the latest patterns from Paris ("Orange Blossoms for your honeymoon lingerie!"). The word delightful gets used a lot. They're really interesting to look at, but this one has the most beautiful piece on the cover. A "delightful (see?) example of modern art in stitchery" is how it's described in the accompanying article. The artist is Georgiana Brown Harbeson, and I'm now on a quest to find more examples of her work!