DO NOT throw away your used sex toys! They'll pervert the entire landfill, or worse, go straight into the sound- if you think those pictures of birds stuck in six-pack rings are sad, well...
You have to bring them to your local fire department, they have a bin for sex toy disposal right next to the bin for battery disposal.
Do the right thing, it's free and all you have to do is fill out a short form with your name, address, and everything you ever did with said toys. It's easy and you'll be able to sleep well.

Put them in your least favorite neighbor's trash can.

But seriously, they are not recyclable or compostable, so to the landfill they go. They need to be in someone's trash can.

I run an adult sex toy business online and I do know that many of the less expensive toys that are made with a substance called phthalates. This is the substance that help make a otherwise hard feeling toy soft. The trouble is that this makes the toys smell bad and will irritate some people. I would just throw them in the trash if it were me or use them with a condom. The smell will fade with time. I might suggest that in the future purchase a toy made with silicone. These are more expensive but will not have a smell, much safer, and will not irritate. I have to admit I do sell both. There are many people out there that would prefer to experiment with a low cost toys and the phthalates & the order do not bother them. There is a website you might want to see from an organization called. C.A.T.T. Just google them. The have some interesting information. Maybe send them the question on disposal and they might have other options for you. I do hope this will be some helpful information for you.
Blondie - www.affections.com

Jesus. Just throw them away. The market for used sex toys is BLEARGGGGGGHHHHH.

http://www.sextoyrecycling.com/

There is a site that promotes green recycling of sex toys, but not only that, they will give you a $10 Gift Certificate for each toy you recycle. You can't beat that. Here is the link. http://www.recycleyoursextoy.com/

I'd keep them on my passenger seat to throw at people who cut me off in traffic - ideally with an accomplice so they can take a picture as they chuck it out the window while we're passing the jerk - these toys are for use with assholes, right?

Chuck 'em.

Honestly, what would you put in a Craigslist ad: "Sex toys only used once b/c they stung the wife." I can't see there being ANY market for used insertables, and if there is, tell me where it is so I can stay the hell away.

The irritation issue could be something that is unique to your wife, that not everyone experienced. If it's not and the store knew that, then, yes, it's a shitty thing for them to sell them at all, even on the discount rack.

Chances are they were just on the discount rack for other, more mundane reasons like they weren't selling well, or they were getting a new shipment in that they needed the shelf space for.

Any chance of putting a condom over them and thereby:
.keep wife's hooha happy and unstung
.continue having happy fun time with wife
.keep dirty dildos out of anyone's hands but yours
.NOT filling the landfill with your reject/cheap plug/dildo?

Also please let me know if you can figure out a way to BLEACH my BRAIN from ever having had to see this Q?