I don't like cutting fabric or felt with mine, because I don't like to use heat n bond. If you want to iron the piece down anyway, it would be fine. If you want to sew around it with a machine you need to use the lite one, in the purple package, not the heavy duty in the red package.
I do like to cut freezer paper, then iron the shape down to felt and use it as a guide to cut that shape. I've done birds, letters, flowers and other shapes. It wouldn't be ideal for intricate designs, but then again either would cutting it straight on the machine, because of the thickness of felt. The freezer paper can be used several times before it will no longer iron on to the fabric. It's also fun to use it as a stencil and paint inside it with fabric paint.