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Dolly ties in with both the nickname trend and the old-fashioned-name trend here, so I'd say it was definitely usable, and so do the stats - 93 babies were named Dolly here in 2012, putting it in the top 500. Also:
Dorothy - 58
Dottie - 27
Dolores - 12
Dorothea - 12
Dotty - 9
I like Dorothy a lot. And I don't know that I'd use it myself, but there's something cheerful and earthy about Doll that I like - somehow, it sounds friendly and fairly tough and no-nonsense, and not particularly doll-like, if that makes sense. Ditto Dot.