New Zealand scarf
When Grant and I went to New Zealand in 2005, for all that there were sheep everywhere, there were very few yarn shops that I could find. And the ones I could find were mostly commercial shops with mass-market yarn that I could have gotten at home. :( However, there were a couple of places where I was able to buy handspun yarn local to New Zealand. That was very exciting!
I finally used up the last of this yarn making a 1x1 rib scarf. I'm afraid the wool isn't very soft (it ain't Merino; my best guess is it's Romney, since that's what most sheep are there), and even a soak in Eucalan didn't make it really soft, but I could wear it out if it were cold, which is what I plan to do with it. :) I'm not giving this scarf to anyone; it's mine! It's a souvenir from the best vacation I've ever taken, and I'm really happy with it. :)
It might not be soft, but the colors are just gorgeous. So soft and muted!
As for not-soft sheeps, I have some of the wool (in a batt) that was used to spin the thread for the "elven cloaks" in Lord of the Rings... and I'm not sure I've felt anything so wiry - not even Lincoln! I've not spun it yet (still working my way through the buttery BFL and Corriedales), so no idea what it'll eventually become.