Ew(e), That Smell: My wool update

First, sorry for the cheesy title. I'm a Lynyrd Skynyrd fan and it seems to describe my feelings. So I finally got brave enough to make the wool longies I blogged about last month. I also found four more sweaters at the Goodwill. I started with 2 sweaters and was able to get 2 pairs of longies and 2 soakers. There are a lot of extra little scraps and I would like to figure out a way to make some wool dryer balls with them, but I have been unable to come up with any ideas yet.
The only thing I didn't have enough for was a waistband for the snowflake longies. You can't tell from the picture, but they are shaped like an ice cream cone! I need to come up with either a non-cotton drawstring or some elastic to finish them off. Here is Tate modeling them:

The felting and cutting (some of it creative) seemed to be the easy part for me. I wasn't paying attention when I added the waistband to one of the shorties and when adding additional rise to the other longies. I have some exposed hems. Prime example why I make things only for fun and not for sale! The snowflake shorties are true up-cycled since I used 2 sweaters to finish them. I figure it's only for bedtime, so as long as the work for us, who cares?

The hardest part for me was figuring out how to lanolize them. I got some Home Health liquid lanolin at a health food store. I really struggled with figuring out how much to use. I tried searching on my phone, but couldn't find anything. I guessed and I have no idea if it I did it right.

This is also when it got smelly. Is your wool supposed to smell like a wet dog when it is wet?! Now, I'm scared to try it for fear the lanolizing didn't work and my heavy wetter will leak everywhere. I was hoping this could be our night time solution, but since Tate ends up in our bed at some point almost every night, I'm a little... no, A LOT leary.

I also have a couple washing questions that I can't find any answers. I read that some people prefer to wash their wool covers with baby shampoo. I don't really want to use my $8/ bottle of Burt's Bees Baby Shampoo. I have a lot of castille soap, including a mild baby formula, so would that work? Can I use my Rockin' Green Soap? I have also read that it is okay to machine wash them, but not necessarily the best option. Since I have an HE machine with a hand wash cycle, would it hurt to toss them in on a quick cold water cycle? And now that they dry, they feel kind of sticky...

I have no idea if I am making this harder than it should be or if my concerns are vaild. I like the fleece longies at night because there's no microfiber and we haven't had any leaks, but I would prefer wool because I wouldn't have to wash them as often. Tate is such a heavy wetter that the fleece are one (night) and done. All of this fuss over a little sheep hair, but I want to make sure I get it right. Funny because I'm not usually a worrier!