I personally like the idea of a trust fund for Bitcoin held by some of the developers / elders with the purpose of legal defense for Bitcoin. We could probably work out some kind of trust instrument which ensures it would only be used for purposes in the spirit of the EFF's work. It may well be that the EFF qualifies for the money some day but it shall not be held explicitly for them (due to the reasons mentioned).

Of course, Gavin would have to take the trouble to set this up but I think such a fund might come in very handy for the Bitcoin community and would probably be the closest thing to the original intentions of the donors.

I'm sure such a fund held by reputable members would receive even further donations!