making blankets & bedrolls

Ya, but you siad you used it on 1/35th.. In 1/35th you need the texture.. If it's getting covered up with paint, you're painting it too much.  Works better painting the tissue with a thinned color (about 50-50), until you get the right level of coverage..

You cant get the texture, this is true, but I find that at scales like 1/72nd it frays to much when you try and cut it, and once you do paint it all the texture goes away anyhow.

I also find that tin/aluminum foil works great for it as well. 

How do you get it to have a cloth-like texture? 

I daresay that you should try rolled tissue, Smeag...  Foil is far too smooth and harder to paint for bedrolls, sleeping bags, and the like...

Might make a good poncho though...

I also find that tin/aluminum foil works great for it as well.  In 1/35th scale I double it up but for 1/72nd I would just use it as is, maybe roll the edge and glue it a bit to give it a nicer aesthetic.

Tissue paper (as in the kind you wrap shirts in for gifts) rolled, then coated with thinned white glue.  Once dry paint and weather and you have a great-looking bedroll, tarp, or other fabric item.