Sorry to be the odd man out, but I don't think I'd sell it. If fancy dinners with china are a part of your fantasy self/fantasy life, then why not let it be a motivator to start becoming that fantasy person?
I understand being on a clean-out kick (I'm in one too - I'm calling it "Organize 2012"), but it's also a good point for re-evaluating your life. Are you really living the life that you want to live, or are cleaning out the house just to fit the aspects of the life you have right now, whether you're loving all of it or not? I like fancy stuff and special experiences, so I'm making it a point to use my china. I use it once a week for Shabbat, but you don't have to use it that frequently. If you like a fancy dinner, then make it a goal to have one nice "these-are-our-fancy-manners-and-this-is-how-we-use-them" dinner a month. My kids are roughly the same age as yours, and our weekly china & crystal dinners turn out fine. And if something breaks, it breaks. My china pattern is called "Eternal" for a reason.