There isn't much use for the amount of bones you usually get, and even then, half the time you won't need it. So I thought of some ideas that also incorporate other underused factors: ( Keep note I won't be giving specific details like crafting recipes or damage values, as you guys will come up with better values than me. )
Bone gauntlet / glove / knuckleduster
The idea for this is to add a weapon using the fists skill, as it is never used unless doing a challenge or a new playthrough. So, what the bone knuckles are an upgrade to your fist, that you can keep equipped while do other things. It won't do as much damage as your other weapons, but it's main purpose is its low stamina usage, no speed penalty and the fact you can keep it after death. This way, when you spawn in you have a fighting chance to get back to your grave, without needing ammo or lots of stamina etc, however its strength would be less than bronze yet higher than flint, so can't carry you.
Bone arrows are easy to make, just feathers and bones. However they are not very strong, less than a bronzehead arrow but more than a flinthead arrows. The better arrows you get later in on the game start to get expensive, and this would be very cheap and gives a use to that chest with a few stacks of bone fragments. It won't be the strongest option, but it's effectively a cheaper flinthead arrow with better stats. However, it can only be used with a bone bow ( seen below )
The bone bow uses marginally better stats than the huntsman bow. The bone bow will need fine wood, iron and bone fragments, so a similar ingredient to the huntsman bow but it will only be able to use to bone arrows, so while it may have slightly better damage total when using bone arrows for each bow, the huntsman bow will be able to use other arrows and in the end have more dps ( less damage on bone, equal damage on bronzehead arrow, more damage on higher tier arrows ) which makes huntsman better for boss fights, and bone bow for exploration.
Hoped you liked my ideas, would love to hear your opinions and don't mind criticism!