Okay this might seem a bit ... sappy ... but I feel bad for tossing our the tree. It was still pulling water. My problem isn't the needles that are left behind, it's that we took something that was living, kept it alive long enough to decorate it, and then threw it out into the cold to shrivel and die. I know that sounds harsh, but I tend to get attached to trees.
Now there are problems with artificial trees, not the least of them being that our cats will climb them (they avoid the live ones), but at least it gets used year after year. I've heard of trees which are potted and you can then plant in the spring, but I don't think that is an option in this area (I haven't checked) and even if it is, I'm not sure about its chances of survival through the potted and then planting phases. We do have places to plant one, but property is mostly made of heavy clay.
I love how the live tree looks and smells in the house. Christmas trees always bring me a sense of joy. I just hate discarding them.