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If you actually bust them out and get use out of them once in a while, then they're maybe worth keeping. The ones you'll never display or pay any attention to...I say get rid of them. I'm in a similar position. My collection is probably 'only' half that size, but I only have a couple hundred figs displayed...and don't think I need much more than my Classics and MPs on display. I've started unloading some of my stuff at local meet-ups, but I wish I'd get a little more motivated and unload a lot more of it. I think my biggest hang up is that I don't have the shipping material to sell 100+ figures separately and question how profitable the venture would be if I bought the necessary stuff to do so...and by profitable, I mean not take huge losses and/or practically give the things away. I don't actually plan to come out ahead, I just want to be in the ballpark of breaking even.

I just sold a bunch of TFs I didn't need or like on eBay, and I have bought myself Perfect Effect Rewinder and Ejector with some of the funds. So now I will have two tiny robots who I will absolutely love, instead of several I either don't need or dislike. So I have saved myself space and gone for quality. I actually feel liberated for getting rid of some of my collection

Maybe start small first, just to be sure that you don't feel really awful when you let them go.