I get too much of it - even with only a couple plants of zucchini and summer squash - and I have had no success blanching and freezing it to retain texture and flavor, even vaccum-packed.
I think you are on the right track - you need to put it into a bread or something where it is grated. Breads freeze fine! but they take up more room in the freezer than I like.
At our house we give it away to the neighbors, co-workers, mailman etc. Tried to give it to the needy but the local place which feeds the poor didn't want it because they don't know where it has been.