Bird tent alternative

I like the idea of a birdy hut as a warm hideaway but either they are very fluffy or I worry about my future bird being overly territorial. Fluffy is nice but I'd like to not think about my bird swallowing the fibres.

Alternative!
Could I get a tea towel/ small cotton sheet (or something like that) and thread it through the bars in a corner with a perch by it? Cosy corner?

It'd probably be a winter thing but is there any drawbacks to this anyone knows or can think of?

Scott E McDonald , google him. has a website with articles. he used to have an article about crop impactions in parrots but i can't find it now. he had lots of pics of various impactions found in different parrots over the years. Most were synthetic materials from things like snuggle huts. Some where from toys and also cage covers. I lost a great pet amazon many years ago due to such an impaction cause by ingesting the fibers from a towel that covered her cage. I realize the sleeping huts are popular with many conure owners but if your bird is a "chewer" then i would avoid the hut. Several of the rescues i've been to use wooden sleep huts for many parrots , these are bottomless wooden boxes with perches inside that allow a sleeping area but don't encourage nesting. Of course if living indoors keeping them warm isn't a issue.

It is really very much the individual bird. My zon as well as my moms 2 zons have all used their snuggle huts (without chewing them) for years. They fall apart from washing before they do from the birds. My dads cockatoo, on the other hand, cannot have a snuggle hut at all because he will chew on it and possibly ingest fibers. Every bird is different, but I don't think a towel is any safer than a fuzzy hut if your bird is the type to rip up fabric/swallow fibers. A wood box may be safer, but then the bird will just rip that up too. If you want to test it, use a cut up cotton t-shirt. That is probably the type of material with the lowest risk for fiber ingestion if you do notice your bird chews it.

I use a new dish cloth. I attached it to the bars so that it hangs like a hammock. My GCC has slept in it every night since we got her. Also she is quite a chewer but she never chews the cloth. I take it out to shake it and wash it and I always look for signs that she's been chewing it.
Maybe use a cloth instead of a towel, because a towel has fluffy fibres that might be tempting to nibble on, where as a cloth is pretty boring. Also check it often for signs of nibbling.
The thing about a snuggle hut is that the fluffiness makes it hard to tell if the bird has pulled out fibres. If you're positive your bird isn't chewing it then it's fine but if you have a new bird and you're not sure if it will chew that stuff or not, then maybe stick to a cloth because it's easier to see the nibbling damage and you will know to take it out.
I think gcc really like having something like that to sleep in, so unless your bird starts chewing it, I would get something like that.

Thanks everyone! I think I'll do a little cotton test like kiwibird said, if that goes well then I'll give the dishcloth hammock a go.
Just to clarify, normal tea towels are more like large dishcloths (at least how I know them). Not fluffy like a people drying towel.

This brings a similar question to mind. Hahnzel likes to chew on my bird shirts while I'm wearing them. Soon I'll be wearing tube tops (pictures only for the bravest of souls). If I see no sign of feeding problems, is it safe to assume it's not getting stuck in her crop?