Hey C.,
I had to respond because we JUST went through this!! For months....probably even years....we have been saying that we have to "gut out" the kids bedrooms and get rid of the toys that they no longer use (ages 8, 6 and 2). Over Christmas vacation this year, I FINALLY had the nerve to just do it. Do you know those big construction site garbage bags? I carried out 4 of those full of broken, worn out toys to the garbage. 3 more of them were filled for charity. Our two favorite places to give to are the Listen Center and to "65 Roses" which is a thrift store in Grantham, NH that benefits Cystic Fibrous research.
I started the project with the kids out of the room, but as I worked along, they actually got into throwing things away. When we were done, their rooms were so beautiful and all of their new toys (and favorite old toys) were completely accessible. Thinking of the ages of your kids, you may want to just do it without them around!
As the bags were being carried out, I was a little sick thinking about the amount of money it represented and also what you said about things being a gift. However, now that it is done and over with, it is the best thing we could have ever done. The kids are able to play with things and put them away now. They seem to appreciate their things more and I am not constantly tripping over EVERYTHING!
So, I say, just go for it!! You will be glad you did!!
N. :-)