To start with, if you are not familiar with what LED lights are, here is a technical definition with some history. Recently, I have seen a lot of beautiful crafts and fashions using LED lights.
Here are some of my favorite uses of LED lights:
Diana was on the 2nd season of Project Runway and I loved her innovative technology savvy designs then. Now, she has come a long way with her designs and they are amazing. The designs incorporate LED lights, but also inflatables, deployable structures, and micro controllers. She even wrote a book, Fashion Geek which includes pieces that do light up. Her Blog has a lot of press coverage as well as tutorials for how she makes a lot of things. Her Fairytale Fashion website, has a series of tutorial episodes.
Accessories that send signals to another person. You both have to wear a Nudgeable. This is great for crowded places where you want to get the other person's attention, but they might not be able to hear you, but can't call you. This is the broach with the fabric fluff up.
Still veering in the fashion design direction (I swear there was going to be crafts too, but my fashion background took the wheel), I bring you some other technology savvy designers...
This video explains how the lasers were done for the Readings Spring/Summer 2008 collection.
These two guys never cease to amaze. Each collection is full of surprises.
This is the Spring/Summer 2010 "Cutting Edge Couture" Collection. The dress that is showing in this still, is my favorite of the collection.
The late great, Alexander will always be innovative in his designs.
This is my favorite video showing his innovation. I intend on doing something similar, but with the dress on a dress form and I'll spray it with an air brush.
I think that is enough innovation for now. I know for the last two designers, I didn't include any LED, but it's still beautiful.