I regift, but I do it thoughtfully. There have been things I've received from certain people that are just not my taste, but I know others who would really like them. One year, some relatives I hardly know gave DH & I a stovetop popcorn maker (some old-fashioned kind with a crank handle or some nonsense). We don't eat much popcorn, and would just use a micro-bag when we do, so we regifted this to a family with kids who do movie nights once a week.
If it is something I really don't like (or already have) and I can do it without hurting feelings, I give it back and ask if they can return it or if they know someone else who might like it. If I can't return it, and don't end up passing it along, it goes to charity. Like the godawful sweaters my grandma used to get me every year.