Unravelling is part of the process of knitting - I can quite philosophical about it 😁.

I rewind unravelled yarn into hanks (usually around a suitable size book) and loosely secure the ends around the hank itself, before soaking in cold or cool water for about thirty minutes (apparently that is about how long it takes for the wool to expel any air it is holding, become thoroughly saturated and relax). I squeeze the hanks gently to remove water and then roll them up in a towel for an hour before laying them out on fresh towels to air-dry. I usually give each hank a shake and turn over every so often (read: when I remember) until they are dry. You can hand wind or use a ball winder (I like the cakes you get with these) and then fold and stuff the yarn label in the centre of the wound cake.

You could also use the yarn double in another garment, although I agree with you, the smaller stitches definitely look more fancy!