Q: Is it okay to regift a baby present I know we'll never use?
It depends. Are you rejecting the gift because you don't need it, it's not age-appropriate, or it's butt-ugly? If the present is a toy designed for an older child, for example, then you can't in good conscience pass it on to another baby. And if the item is simply too hideous for words, why on earth would you want to regift it and have someone think that you picked it out?
On the other hand, if it's something you won't be able to use because you've got the same toy, or it's an adorable outfit, just too small for your baby and you know it will fit the recipient's child, well, in this economy we won't be pointing any fingers. Just be prepared with a good excuse ("We love it! Katie just wore it yesterday and it's in the laundry!") if the original gift giver pays you a visit and wonders aloud how you liked her present.