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Another awesome type of self-striping yarn (probably the most unique) are those that are hand painted by dyer's specifically for the striped effect.  While working with these yarns a dyer will delegate a much longer section of yarn to a specific color so that, while knitting the stripes form themselves. 

One of the great qualities about handpainted stripes are the subtle variations among the 'solid' portions (the saturation and slight variation of colors adds an unmatchable color depth) and an interesting "transition" zone between stripes.  Because you never have stripes changing at the exact same place, you end up with some really interesting 'passages.'  The hat pictured was done in a handpainted self-striping fiber and turned out beautifully.

The yarn here is a handpainted superwash worsted merino from Sundara Yarns.  Sundara is an amazing dyer based in Seattle Washington and, of all the independent dyers out there, she's got the best color sense in my opinion.  This yarn specifically I think would be a big hit for kid knits, especially since the yardage is stellar!

More striping news to follow!