Retrophone: because they were so great the first time around
You could sell it on eBay. You could donate it to a recycling center. Or, you could convince others that it's chic to have an old phone and sell it on the web for a premium. Tha people at Retrophone have found a market for older cellphones, and according to their website, they're turning around 500 of the suckers per month. If you miss your old Nokia 8110, you can do it all over again. At least in the UK.
[Thanks, Russell]