A few things we use our kitchen towels for, besides just drying dishes:
A drying rack, of sorts. We lay down a few towels and pile up dishes we've hand-washed.
Impromptu trivet for a heavy pot.
Apron. We don't really like aprons, but we hang a dishtowel from our waistband to frequently wipe our hands while we cook.
Decoration. The pretty ones hang from our oven door handle and add color to a bland kitchen.
Wrap for produce. If we're out of storage bags and are planning to use some greens or herbs quickly, we'll wash them and roll them up in a dishtowel, then store in the refrigerator.
Pot holder. If it's within reach, a towel usually serves when picking up the lid of a pot or pulling something out of the oven.
Any other suggestions?
(Image: Faith Durand)