Hummm, I have kept my trap shut but now I am overcome and have to add my 2 cents.
It all depends on why you knit. I am a yarn snob. I will knit with cheap yarn if it is soft and doesn't boss me around (i.e. it has some give and doesn't split too much). BUT if it rubs or itches my fingers, pulls on my joints or squeeks, it's outta there.
I have knit with one Red Heart yarn that I don't mind (Red Heart Soft) and another that I don't care for but I could be convinced to use again (Symphony). But the one you have makes my hands sad. I might use it if I were the second to last person on earth and I had to knit myself something to protect myself from the murderous advances of the very last person. Then again, if I'm the last person on earth, I probably have some time on my hands so I might just learn how to shear and spin myself something delightful.
Here is my point, and I do have one. Knitting is supposed to be FUN. You had the fun of picking out the yarn, great. But now you are supposed to have the fun of picking out a pattern, then the fun of knitting with it, then the fun of giving the final product to someone or using it yourself.
You are already not having fun picking out a pattern. Then when you knit with it, it is going to make your hands sad. Then when you have battled it long enough to finish your project, you will have something in colors that don't go together.
The simplest solution is to go back to the store and exchange a few of the colors with a few that "go". Now you get to have a second dose of FUN when you buy the new skeins, plus the fun of ending up with something you like. Hopefully the process of picking out a pattern will be more fun too now that you aren't constrained by weird color combinations (particularly if you pick your pattern before choosing the new colors). That just leaves knitting with it, and you can stand anything if it's only for a little while. Once you are finished, it is back to FUN because you have something lovely that doesn't look like it was made on a dare.