I've found one really good use for packing peanuts. I grow many types of plants from cuttings I take from existing shrubs. When it's time to transplant the rooted cutting into a 2 gallon container pot, I fill half the pot with peanuts and the other half with potting soil. The peanuts act as a filler, thus saving money on soil costs, plus they encourage good drainage.
Like others have said, I don't particularly care for them spilling out onto the floor after opening a guitar shipping box.
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