Making a yoke: If the sleeve is almost long enough, strategic cutting leaving the shoulder seam intact can yield a cute little yoke detail.
kind of hard to see with this fabric, sorry.
Adding a panel: When using the body of the shirt, You can cut out as much as you can, still lining up with the hem of the shirt, or elastic waistband if using a sweater or waistband. Then cut off an inch or two above the hem (or go all the way up to the knee for a "knee pad" look). Cut a piece to equal the missing amount plus extra for your seam allowance. Sew your pants up the side seam/seams. Do the same with your hem piece and extra piece, carefully using the same seam allowance. Then add the extra pieces by sewing with right sides together, matching up side seams. Finish with topstitiching to make it lay flat and look decorative.
I'm sure there are lots more ideas out there floating around. Anyone else have a technique they use?