Andrea, we don't :frying pan: people for using their own resources the best way they can. If you want to and can line dry, fine... if not, fine, too.
Can't you re-use those dryer sheets again? I mean, rinse in your solution, squeeze and re-use?
Has anyone tried those plastic/rubber-like balls in the dryer? They're supposed to eliminate the need for fabric softener.
I *always* dilute my fabric softener by about 1/3 softener to 2/3 parts water. Saves money, trips to the store, and works just fine. Use your old jugs for mixing it... and make sure the full-strength ones are out of sight of anyone else who just might (yeah, riiiiight ) get the hankerin' to do laundry.