The instructions on the site you give indicate that the Setter works with light-weight aluminum eyelets.  I would think you could punch and finish eyelets in fabric, but you'd be limited to thin layers or single thickness fabric, nothing hardworking like corset lacing.  Am bettin' also that a single layer of flexible fabric will need a little reinforcement to allow the punch to make a hole …. like ironing a patch of freezer paper to the fabric where you need the hole and peeling afterward (requires some experimenting!).  However, I could imagine that a flurry of eyelet holes would make for an interesting embellishment on a patterned fabric for pillows, art-to-wear, off-beat dolly or doll clothing … flower centers, a 'holy' cow, a starry night … interesting possibilities.  For that matter, why couldn't one use the same colored eyelets normally used on paper ….. oh dear, that's starting something …..

Pete said:

Have been gifted with a Provo Craft "Silent Setter" and am wondering if anyone has used it for anything other than scrapbooking.  It looks like it will be great for making gift tags, among other things.  But, I'm not a "scrapper!"

Can this thing be used on fabric, for instance?

I can remember using my mom's to 'decorate' things I made when I was young…the pocket or hem of a dress, a purse, etc. YES it can be used on fabric!!