I actually have used the teddy fur too. I have a series of grassy patches (tall grass for for wilder areas or marshes - some peices are supposed to have ponds in them) I've had half-done forever.
Mage Knight figures have larger bases than most minis and are generally lighter, so they sit on top of that grass too, so figures actually hiding in the grass is a non-starter there too (or is at least way more effort that it's worth).
They ought to look good while figures aren't in them anyway. It's not ideal, but I can live with the compromise.
*sigh* really should finish those.
EDIT: I did see some really neat silk carpeting with a golden grass look, long tall fibres, and plenty of spacing between the tufts at Home Despot. They looked like I might've been able to get the full Elladan effect even with MK bases, but the rugs were only sold in large sizes at several hundred dollars a pop, so so much for that idea!