I put old toys that are still in good condition, but not being kept on freecycle. I know it's not me reusing or recycling them specifically, but at least they're going to someone else who can.
Old terry towelling nappies and the like eventually become rags - for cleaning, painting (kids, not house) and the like.
Most of our baby stuff gets passed on to someone else who can use it. Although we've kept a fair bit for number two! We also lend out those things that can do more than one family when we're not using them.