Firstly, don't use a dryer. Dry your clothes on a clothes line. They will smell lovely and not be clingy, because they haven't been rubbed together to create static cling. Also, the clothes don't get as worn as in a dryer.
But - there are things one can use the dryer sheets for ;-)
1) Have a pack of wash cloths, old rags, handkerchiefs - pieces of cloth about 5x5 inches (25x25cm)
2) soak them in fabric softener or hair conditioner and let dry.
Now, I don't use fabric softener either, so how to get the same effect without factory fabricated fabric softeners?
Now here is a recipes for fabric softener:
1 liter white vinegar
5 drops essential oil (for example lemon, bergamot, or other citrusy scents; citronella or lemon grass, lavender, tea tree
1 tsp vegetable glycerin
this one might work for dryer sheets
One suggested use for dryer sheets is mosquito repellent. Natural mosquito repellents are all lemony scents, especially lemon grass and citronella. Lemon eucalyptus might work as well.
Also, don't use black or yellow clothes - those attract insects; be clean and dry, and stay close the fire.
Here some other suggested uses of drier sheets:
Wipe your television screen, computer monitor and venetian blinds with a drier sheet to keep dust from resettling.
Clean the shower doors with a drier sheet.
Use drier sheets as air fresheners in drawers, closets, cars, suitcases, wastebaskets, laundry baskets and shoes - and every where else.
You can prevent thread from tangling by running the threaded needle first through a drier sheet.
You can eliminate the static cling from pantyhose by rubbing your legs with a drier sheet. (You can also rub your hands with hand lotion first and then "dry" them on your legs)
Collect animal hair by rubbing the hairy area with a drier sheet.
Wipe up sawdust from drilling or sandpapering.
Now, don't use a "good" cloth to dry up sawdust, cat hair or to deodorize waste baskets, but let that be the last use of your sheets. You could also have some diluted fabric softener in a spray bottle and spray that on a paper towel for that sort of use. You can then compost the paper towel.