I've been boxing them up for #2, but along the way, DS "rediscovered" them and has found new uses for them.
Most end up in bathtub, but we do an awful lot of fishing that way!
Another odd one, is one of those rattles that has a suction cup on the bottom so it stays in one place, and then the top part twirls around. This is stuck to the side of the tub and DS has a great time making it turn by pouring water on it with cups!
But I do agree that less is more. We get a lot of well-meaning gifts that are just too boring -- ie you can't really interact with them, or they don't do what they say, so now we don't always open them, but donate them to goodwill. I never say anything to the giver and I feel badly, but at the same time, after DS's Christmas we had this whole box of plastic toys he wouldn't even play with -- it was balls, balls, balls and building blocks.