Like any1 here is going to tell you to throw them away and never come back! Hah!
Seriously tho, download imgburn and backup the CD's. Write the codes in a text file, and if you really want the 1 inch of space free, toss em. Even if you were to buy them now-a-days, all you would get is a digital download, same thing.
As for to old to play? I think you will find many of those who hand around forums are older than you! Soon tho, hopefully, some new stuff will come out and things will pick up again. So don't be too eager to jump ship.
EDIT: That means my vote would be "Your not washed up, but if you want, save the CD's on PC and throw them away"