Flannel Frustration

Quality flannel seems to be getting more and more elusive. I bought some orange flannel yesterday with which to line a toddler's coat. I prewashed and tumble-dried it prepatory to layout and cutting. It came out of the dryer an absolute fuzzed up mess. Huge fabric pills, loose weave, color loss. How frustrating! This is the 3rd time this has happened to me with flannels. I love flannel, but really don't want to pay $12 a yard for a decent flannel. Since when did flannel become a luxury product anyway? This typical chain store flannel, however, is now on my Do Not Buy list. I need to find a happy medium. And, unfortunately...a new lining for this coat. :( :(