I've heard it said that today's children lack the imagination of my generation. I don't know if that's true, but I would find it surprising to see many of today's kids play the way we used to when I was young.
For example, my brothers and I used to play out military scenarios based upon what we've learned about World War I and World War II. We had some old army pup tents my father obtained during his time in the service with we set up our own encampment in the backyard. We also had our toy guns and made ourselves uniforms from boxes of old Boy Scout clothing we had lying around the house. Oh, what I would have given back then for some embroidered stock patches from the military. Not that they didn't exist, I was just unaware.
Had I known I may have used some of my paper route money to buy some Army or USMC patches to decorate my uniform. Of course, I would've made myself some sort of officer's uniform for those times when I just want to boss everyone else around. I'd make another infantryman uniform for days I felt like picking up a rifle and going off to battle. It was fun, but it would've been that much more vivid in my imagination with a properly decorated uniform.
I say all this to say that there are plenty of uses for embroidered stock patches beyond just identifying a motorcycle club or a sports team. You can use them for all sorts of things; from group identification to rewards for accomplishments to a child's dress up and play. Embroidered patches are cheap enough that they won't break your finances, either. If I were young again I'd be ordering my military patches today.