That is a great question! I began the year by finding all my UFO's, putting each in a bin of its own with any bits and bobs that related to its completion, and made a list. My goal is to finish one per month this year. Yes, a lot will become dog beds, but the dogs will be ecstatic and my UFO list will not be so demoralizing!
I do want to defend UFO's though...many of mine were pieces begun in a class where I enrolled to learn a new technique. While the class project may have joined the UFO pile, I learned a skill that was often used in other projects. So for many of my UFO's, they have served a purpose, independent of being quilted, bound, and put into service.