I have HUNDREDS. Piles and piles everywhere, and I can't part with them. And they won't let me, either! I've been caught a few times trying to pitch them in the garbage... let's just say that my kids did NOT like it.
There are lots of different ways to re-purpose these treasures, but none of them really appealed to me very much. But since I'm pretty good at the whole sewing thing, and since I have a pretty nice machine with software that allows me to digitize my own embroidery designs... I decided to put it into a snuggly quilt and pillow that they could keep. :)