h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

If you wrap your hand in your towel, you can smash glass from windows without sliceing your arm up.

Sumo wrestler costume! Hai!

also, when wet its so strong you can use it to bend metal prison bars for instance (i saw it in a cowboy movie once) and if theres something heavy around, you can put it in the towel and swing it around threatiningly (like a rock or a toaster), which ive actually done to avoid being jumped. just be sure not to hit yourself with it, (which i have also done) but it does stop anyone from needing to beat you up anymore.

You could wrap two towels around your feet and use them to walk over broken glass too.

That thing with wet towels not ripping dosn't work, I saw them test it on TV. Well, it might work since the tested it with silk instead of a towel. I might also mention that on the same show they disloved a iron bar with salsa. And a towel, he used a towel too.

From restaurant kitchens (where small towels, approximately 30 cm square, are in ready abundance): A wet towel, placed flat under a cutting board or wrapped around the base of a mixing bowl will reduce sliding about and noise. The same "stickiness" can be used to hold drop-hinged doors open, if the bottom edge of the door is close enough to the ground; tuck a damp towel under there firmly with your toe. Depending on the weave, a towel can also make a filter or strainer. I've personally found a towel makes a superior bandage for serious cuts in the inside area of the hand: the substantial volume of a wadded towel allows one to apply compression and stop bloodflow by simply making a fist.

Also, if you need to drive a long nail but don't have a hammer, a towel can substiute: Fold your towel (or other cloth such as a shirt or sock) into a small, thick pad. Place this flat in the palm of your dominant hand, then make a fist around towel and nail, the point of the nail protruding from between your fingers. You can then punch the nail straight into the desired surface. The nail probably won't hold a lot of weight, but it may be better than nothing. If possible before you punch, press against a hard surface with steadily increasing force to make sure the nail and towel are situated correctly so as not to injure your hand.

Car towel: thick, large towel that stays in the car. Keeps my carry-out pizza (and 'go boxes'/'doggie bags') hot on the way home. It also keeps my refrigerated and frozen groceries from melting/spoiling on the drive home in hot summers. It protects fragile cargo from breakage and conceals valuables when the car is parked (theft avoidance). Moonlights in many other areas of towel usefulness.

I often find that a towel can be worn to cover oneself in emergencies when one would otherwise be left unclothed and vulnerable, a towel (which one will obviously have handily within reach), makes the perfect, makeshift birthday-suit-cover-all.

As a restaurant line cook, I know well the importance of a towel in the kitchen. I always keep two towels tucked into the waistband of my apron. One, folded in half vertically and horizontally to be used as a hot pad for handling pots, pans, etc. The second towel is for drying/cleaning my hands. I keep these towels on my person to prevent theft by coworkers. I also have a towel in a bucket of sanitizing solution for cleaning the counter, or any other surfaces that need to be cleaned throughout the night and another towel dampened with water for cleaning up the rims of plates.