When I first saw the Glowforge video I thought this might be just the thing to cut out fabric for quilt applique. When my machine finally arrived the third thing I tried was to cut some adhesive backed fabric.

This is cotton fabric, backed with an iron on adhesive, (Steam-a-Seam2 light). I found I could cut all the way through the fabric, but leave enough of the backing paper to keep the parts from falling out.
Cutting all the pieces by hand would have been a pain and rather time consuming. It was much faster to use Art and Stitch ( a quilt/embroidery design program) to trace the photographed pattern. It will output an .svg file that was usable in the Glowforge.

I was able to finish the Easter Bunny Nest quilt in plenty of time for the holiday.