That's cute. It would be my luck I would make it and no one would use it though. That kitty sure likes it and is cute peeking out of it.
OMG that is the cutest thing ever! Well, as cute as this other one that I'm planning to make out of a felted sweater: http://www.moderncat.net/2011/11/09/moderncat-etsy-find-cozy-felted-wool-cat-beds-from-kce-knits/
Now I'll just have to make one of each and both my cats will have their own nests