Good use for bad yarn

I had this past Monday off for Presidents' Day and spent a bit of time organizing my stash. I wish I'd known then, when I was spending money on yarn, what I know now: the entire package matters to me. What I mean by this is that yes, I enjoy the process of creating knit items (aside from finishing, but that's beside the point) and I enjoy wearing and giving hand-knit garments and gifts. But if those items are made with yarn that pills or doesn't hold up or doesn't feel nice, then it negates all the good aspects of the project.

I bought lots of yarn when I was a grad student on a very tight budget, and now I find I'm overrun with my budget yarn. The bulk of it is Lion Brand Wool Ease, mostly worsted but a bit of Thick and Quick, and now I'm lamenting the cost of all this yarn that I won't use for garments (I have in the past and it pills terribly) and wishing I could undo all of it and use that money to go back and buy some really nice Malabrigo (which I hear is great but that I've never used) or alpaca of any kind.

Instead I'm going to make loads and loads of accessories - scarves and hats primarily - and will give those as gifts or will donate them. I in Ohio where winters get cold and I think that, when doubled and knit tightly, that worsted Wool Ease will make some nice hats for people who need easy-care items. I'm hoping to drop a load of hats off at a local women's shelter, probably not this year, but definitely before next winter.

As I write this, I realize that my title isn't really appropriate. "Bad" is subjective, isn't it? Is the yarn bad if it's being used correctly? I think the repurposing of the yarn makes a less-awesome yarn, well, awesome.