Thoughts on re-gifting items

Little one was too long for newborn sizes so a lot of clothing I bought and were given as gifts (grandparents bought lots of things while in America but since we are in the UK couldn't exchange) have gone unworn.

A girl at my work and one of my husbands friends are due babies next month so I made up really cute little gift baskets with small items I purchased and some of the clothing. From my point of view they haven't been worn, we won't be having another child so it would be best to give them to someone who can use them. Also I was bored and quite enjoyed sorting the baskets!

My husband thinks it's rude to give away gifts and the baskets make it look like I've went to a lot of effort buying things when I haven't.

Thoughts?