I will post most of my message here in case it helps other people out.
I think what would work best/easiest is a 3 piece saya. Get some basswood in the thickness that matches the thickest part of the spine of your knife. Draw the blade profile on the piece and cut out with a saw. This will make a spacer of soft material to protect the edge. Local wood stores like woodcraft or rockler have basswood, it's pretty cheap. Then take the nicer wood, cut it down with a saw to the thickness/width you want and flatten it to make sections wide enough to cover the spacer completely. So you have 2 flat pieces of nice wood and a spacer of really soft wood (to protect the edge). Glue and clamp together, trim to size and sand. Easily done with hand saws, files, clamps, glue, sandpaper.
Not sure with the felt, it can retain moisture and cause the blade to rust if going to and from hot/cold environments? If you want, you can cut strips of felt and glue them to the inside of the outer panels in the area where the spacer is open, not sure how thick it is to effect the fit of the blade? Remember, some blade spines are tapered (and may be uneven), so you may need to file a relief in the saya panels to make it fit in or just go with a thickness of spacer that will fit the thickest part of the tang/spine. If using felt, you may want to go thicker to accommodate the thickness of felt, or put the felt lower on the saya toward the edge where the grind is and the blade is thinner. The felt may help with a tighter fit and keep it from rattling, but will loosen/compress over time.
Doing a carved saya was out of my comfort/skill level, you need chisels and need to accurately carve out the pocket. Some people make really nice carved sayas!