My mom found and gave me a bag of little girl clothes that my grandmother (now deceased) sewed. They are horribly out of fashion, so not something that DD could wear, but I feel terrible thinking of getting rid of them.
Should I have DD wear them as dress up clothes...? Preserve a couple and donate the rest...? Right now they are just in a bag in the closet taking up space.
Sell them. A lot if people pay big money for ugly vintage stuff. I've seen some instagram sellers doing this. You could maybe frame a few things you like as nursery decor?
I have a lot of homemade dresses my mom made for me when I was a kid. They are well made but out of date. My girls love playing dress up on them.
Give them back to your Mom if you don't want them. I have clothes that my Mom made for me when I was younger and some outfits that I sewed myself when I was younger. I agree with @girlymama79 if you decide to keep them, let them be dress-up and play clothes. The heirloom factor is one reason I wouldn't get rid of them because there's a story to be had for future generations. I know our church sometimes has "Heirloom fashion" shows.
Re: What to do w/ handmade items?
Personally I'd keep 2 and then give them back to my mom or donate them.