Further refinements would include gold stamping the title on the spine and adding cover decorations.
Unfortunately, I haven't found an inexpensive way to do these steps, but I'm exploring ways to use computer generated titles and get gold stamping effects.
UPDATE: I've developed a process to put gold titles on cloth without using expensive hot stamping equipment. This is a very preliminary result, and I hope to make improvements, but you can read about the method here.
I used the free program OpenOffice Draw to create dust jackets: