Q: Can you use old shoe-leather for crafting?
A: Yes, if you don't mind rough, rustic and simple.
Q: Is it worth it?
A: No, not financially, but yes if you have an emotional attachment to the idea.
Q: Have you ever actually done it?
A: Yes, and I got a good story for my trouble.
You can definitely cut up your old leather shoes and use the leather in craft projects. But if the shoes are so old and worn out that you are willing to sacrifice them, the leather is probably old and dry, scuffed and cracked and generally not very pretty. Plus, it's time consuming to disassemble the shoes, the amount of leather recovered is minimal, and you'll spend even more time reconditioning the leather into a workable state.
But if you have a deep-seated need to use every scrap of resources, there are a few projects where old shoe leather is appropriate.