I've had a similar dilemma with my dress...I've heard so many people talk about scams with dress preservation that I was wary to do that.
The couple of ideas that I have for mine are:
1) To cut some of it to keepsake as Christmas ornaments;
2) To cut some of it to make into a small quilt or pillow;
3) To donate the rest to H.A.I.N. in memory of a lost child.
Now I just need to gain proficiency in sewing (or at least buy a machine) to do this!
There's no right or wrong answer about what to do...it's just what makes most sense to you and feels most comfortable to you.