One way to destash is to use your yarn for rocking horse hair.

We had a wonderful Christmas. Charlotte loves her rocking horse and has spent the last few days either riding it herself or giving all of her stuffed animals a turn on it.
As far as knitting gifts go, I received an autographed copy of Stitch 'n Bitch Nation from Michael. While I'm having a lot of fun looking through the patterns, I have to admit that reading the knitting group descriptions makes me homesick for Knit Happens and all of my Virginia friends. I also received some gift money which will be spent on a knitting bag.