Avoided pallet projects for a long time, thinking they were more trouble than worth. Then I helped a buddy build a tool rack from one, and we spent an afternoon prepping the wood. We pulled out old nails, sanded off the rough spots, and gave it a coat of sealant. That rack is still in his garage two years later, holding heavy wrenches and saws. It showed me that with a bit of extra work, pallet wood can be really useful.
Pallet wood often has hidden nails and chemical treatments that can be problematic. I read a DIY blog warning about splinter risks if the wood isn't properly prepared. Taking time to clean and sand the pallets first really helps.