Those styro peanuts are excellent protection, not only to keep things from being bumped around, but they also insulate from heat and cold extremes. BUT -- these days some of them are made of a biodegradable starch, but most of them still aren't. I try my hardest to continue to recycle and reuse because the longer we can circulate them and keep them out of the landfill, the better. Plus, have you looked at the price lately? Unbelievable!
We've done a little packing with shredded paper at work lately. We shred office paper and junk mail anyway, might as well give it a second life.