If you are at the point of just giving them away I'd say keep them. They may come in handy later for various reasons. I'm down to the last half dozen of one of my band's CD and they are now apparently a collectors item... BUT even if it weren't it's just something cool to have around for other gigs.
Like say I started another band and we were gigging and had our own CDs or merch or whatever. People at shows WANT to buy stuff. If I only have one CD and one shirt for the new band both going for ten bucks each and I have an enthusiastic merch hound with thirty bucks burning a hole in his pocket I could say "Hey, I've got this here CD of my old band... wanna buy it?". They just might.
We used to do this all the time with other bands CDs and merch. We had a little community of like minded local musicians so whenever one of us went on the road we would drag along some merch from our buddies bands so that if people had already bought all our stuff or were interested in the other acts well those bands get promoted out of town, make a sale even though they are not there and we get an extra bit of hard cash for the touring fund (which can go into the gas tank in an emergency and we just pay the other band back when we get home... and of course they would usually give a cut to us). It's a good way to do things and build up a "scene" vibe for your town.
The other thing is maybe someone will offer you a chance to get on a compilation. You can send them a manufactured product which looks better than a burnt CD or a digital file. Now they also have it in their collection and might play it for their friends or maybe they run a radio show or something.
Aaaaand if you get REALLY broke you can go out busking. I'm not sure what you do exactly but I used to go out with my guitar and play my stuff. I never had a CD of that work BUT if I did I could have made WAY more money. Passersby tend to take street performers with CDs more seriously and will toss more change at you and/or inquire about the CD which you can of course sell to them.
So yeah... I've never considered having CDs laying around a problem. I actually wish I had hung on to more of some of my manufactured stuff.
Cheers.