I finally finished the soon-to-be felted bag. I actually over finished it. I had been mindlessly knitting away on the second strap, which last night had seemed like it would NEVER be long enough. Then I measured it this afternoon, and it was three inches too long. Dang it all to heck!
So I threaded a lifeline at the appropriate length and ripped it back. Then I sewed it all up, and took pictures for your enjoyment, and also as documentation of the felting process. Here it is, with the knitting and finishing completed: