Do you all have Christmas stockings? She could make them out of felt & sew little cut out pictures on the front....

Another thing she can do, not decorations, but with the sewing machine, it to make Christmas cards. Lots of scrapbook pages use sewing onto the cardstock, so you can use that principle for Christmas cards. Maybe sew a border around the outside & then glue things on the front. Or even do a minature felt gingerbread man on the sewing machine & stick that on.

And this one for a door hanger -
Cut 10x5 rectangle out of heavy weight cardstock. Cut a 3 inch circle in the top.Do the same thing with felt but make allowance for sewing by adding a fraction. Cover your cardstock with the felt and stitch around the edges. Alternatively you could glue this felt on and cover the glued edges with ribbon, glitter paints or cord. Once your door hanger is covered you can embellish with ribbons and ornaments.