I delete templates that I've used, as I only use them once. Even my own... I keep a folder for my templates that I haven't used yet and delete from there once I have. (I do keep my actual template zips in a separate place.)
I rarely delete kits, but once in a while I'll go through and delete the really old stuff, and things from other shops that I know I'll never use. That said, I do have some old favourites from long retired designers that I just can't bear to part with yet.
I actually went through my old EHD a while back and deleted all of my early work. I kept the previews, but trashed everything else. I thought it would be hard, but it was actually rather freeing. LOL
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