Done! It's a bit smaller than I'd hoped, but its large enough to hold the essentials - keys, planner and wallet. Putting it in the washer for a few more rounds did not de-fuzz it as I had hoped, but it did shrink it a whole lot more. I ended up using the beard trimmer on my husband's razor to make it look less fuzzy. I think my next project with this yarn will be a felted bowl, and then perhaps a larger tote.
Just to put it in scale, the tote is not as tall as a paperback book: