The punch in question is Punch Bunch's large horseshoe.
Looking at the shape the immediate things that pop into my head are a purse or basket handle, an angel's halo, or even punching several horseshoes in a row from black cardstock and using the negative to depict several little girls' heads in silhouette (maybe to create a border or a row of an audience).
I wanted to be a bit more creative though. What I came up with are several "ribbon" style flowers and borders.
I haven't made anything with them yet (still working on that) but thought I'd share the ideas.
First up is a 3 petal ribbon flower design. As you can see by adding more layers the finished piece takes on a different look.
Next I made a 4 petal design (I think the 2nd stage with just the b;ack center would work really well as a background):
I then thought I'd try a 5 petal design (this is the largest I recommend).
I then wondered what would a border look like? and came up with the following:
Last but not least I thought, the horseshoe resembled a chain link and came up with this:
Come back soon to see some of the above ideas put into use.