I just found these wonderful embroidered letters at the Play to Learn shop on Etsy. Absolutely beautiful, and fun to use for tactile letter learning play. The storage bag (available for $5 more) is cute, but I might rather keep them in a clear container on on open shelf, so I could admire their cuteness even when they aren't in use.
This whole shop is pretty darn fabulous. I'm also particularly in love with the wall clock and number set.