Simple garter stitch is fabulous for showing off a wonderful yarn- whether it's an interesting variegated like the original (below) or some of Malabrigo's new neons (they're a little tough to photograph though, haha.) Easy enough for mindless tv knitting, but interesting enough (thanks to the shaping) that you won't be bored out of your skull. Garterrific makes a fast and wonderful gift, too!
You can find it on Ravelry here, or...
This was a project I thought about including in my Malabrigo ebook but I wanted to make it in this yarn instead.
If you want to make the most of whatever yarn you're using but you really want tassels, I'd recommend making them before you start knitting.