There are two kinds of embellishment in knitting. My former knitting teacher was big on embellishment. She believed in taking a published pattern and making the final garment "your own" by adding unique finishing touches - a crocheted border, for example, around the edges of a sweater (maybe in a contrasting color for added zing).
The other type, which she also demonstrated to us, was to add knitted or crocheted details to other items: lacy borders on towels, crocheted lace on the hem, collar and sleeve edges of a purchased tee shirt, etc.
The summer 2007 issue of knit.1 (p34), has a perfect example of the second type, a quick project for embellishing a v-neck top. This was exactly the thing I'd been looking for, to disguise a repair to a favorite sweater that still has lots of wear left (see 1st photo). The pattern has instructions for two types of flowers and a butterfly, which are then assembled into a single piece to add to the garment. I did all of this in a few hours, and I am now ready to make the repair to the sweater and position the embellishement over the repaired area. It also gives a plain garment a fancier look, and I am sure there are plenty of folks out there who can add their own touches - like beads either hand-sewn on or crocheted right into the design. Why not create your own?