I'm sure we all feel that way from time to time. But really, you must have more faith in people! Surely your loved ones will greatly appreciate your creations, and as for not taking care of your knitted items, I suggest attaching a little note with care instructions on each item. (It makes it more personal as well.) Then just, well, LET GO!! As you said, this craft is best for sharing. (That goes for a lot in life.)
Anyway, look at it this way: Not only do you truly brighten someone's day, but you also have that empty basket now screaming to be filled once again.