For instance, I was on a long bus trip recently. If I had had a Nook 1st Gen, I would have used that to read, and save the battery on my Nook Color and my Android Player.
Similarly for taking an ebook reader out (1) to the beach (2) where I would worry about losing a new device.
I actually dropped and partly broke my NC on that trip (on the corner with the headphone jack, so the headphone and hardware volume keys no long work), so I'll be getting either a refurb'd NT or an HD ... but I'm going to be keep the NC as a back up.
The N1E screen is going to be hard to beat for reading in bright lighting, so definitely keep it around if you frequently like to read outdoors. The battery life is fantastic, so it's good for a week away from civilization. I keep one of my NSTs as "beach nook" for exactly this purpose. It's inexpensive enough to replace that even if it gets destroyed, it's not a major disaster, and I'd rather be able to read than do without.
Keep it. For longer trips its better than the tablets because of the battery life.
I have a NOOK color and now have a NOOK HD+, my nieghbor has the same, and since some books aren't lendable and the ones that are can only be lent once we just trade one of our nooks for a while. We belong to 2 books clubs, shee buys ones books and I buy the others books.
Keep it. It's better for reading outdoors--the HD tends to have glare. It's got better battery life, so it might be good to have if you were going on a trip. You could also use it when you go to appointments and the like, or in cirucmstances where there is some risk of losing or damaging it. My first Nook was the NC, which I love; but I bought a Simple Touch for the same reasons I'm suggesting you keep your N1E.
Sandi, I'll second what BFCoughlin and Bruce and others suggest: To Keep It.
1) You never know if one of them gets into an accident or something.
2) Battery Life is MUCH better on the eInk Nooks making them great for trips or if your Nook has run out of battery life.
3) You can hand it over to a friend or relative temporarily (like a book loan) if you want to share a book or such.
4) There is a slight chance you get into a temporary issue with the Nook HD. The software is still not finished level.
IF you really don't want to keep it then what PatGolfNeb suggests sounds super. I hadn't thought of that - old Nooks and Kindles given to schools and such is a super idea.
I'm going to give it to my 8yr old. He doesn't need all the fancy bells and whistles they come with now. My 1st Gen Nook will work great for him. SandiSadie, maybe you should find a child that loves to read.