Since I originally had planned to do the textures after I'd done the animation, I didn't get to do as much as I'd liked. Therefore, I didn't get the time to do hand-drawn textures, as I'd originally thought. Instead, I ended up using pictures and realistic PS brushes. It looks neat, but it's far from what I actually wanted.
And the sheep has only modified standard materials, with a slight falloff on the wool, since it sort of disappeared into nothing before.
For the wool on the sheep, I originally thought to use particles, like this:

But it looked like a cloud with legs and a head, so I thought I'd use little spheres for the particles (as instanced object) instead. And I was pretty happy with the result. Until I tried to move the sheep (animate it). The particles didn't move with the sheep. And again, due to the rigging problems, I couldn't use any more time trying to fix it. 
Since I had semi-realistic textures on mostly everything else, I wanted to have some wool textures on the sheep, but I couldn't find anything that was even slightly tillable, and again, I didn't have time for anything else...
I actually almost considered to use some knitting pattern textures, as that was the only tillable wool-like texture I found. And I like the style it would've gotten, like sackboy in Little Big Planet.
But then I would've had to change all the other textures to match, and that would've been waaay much more work and time. 
The design for the clouds have been alot back and forth. For some time, I thought to have them the way the wool looked at the start (fluffy cloud thingies). Then there was the Idea to just have a lot of spheres to make a really cartoony, bumpy look to them. But I wasn't really happy with what I managed to put together that way. And then I suddenly figured I could just use some PS cloud brushes from dA. There, I found some really god ones pretty much right away. The ones I used were by Xephyr and Linzee777.
Then I just put them on planes and placed them randomly in the scene. I think that's one of the parts I'm the most happy with - the clouds.  :3

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