This is actually a pretty sensible product if you think about it. Instead of filling up the landfills with shreds of green plastic that never degrade, get some that will.
Edible Easter Grass is a product of Germany, named "Hoch Fun-Food Edible Easter Grass", and is brought to the States by Chicago Importing Co. It's made of "wafer paper", a rice product, and is meant to replace the plastic variety that decorates easter baskets. And of course its landfill friendly too.
Won't be available until Easter of 2006.