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Heavy sixers are the most sought-after models of VCS iirc, but that’s not saying much - as you discovered, 2600s usually aren’t worth anything. I think it’s a combination of wide availability and limited appeal to modern collectors compared to later systems.
Personally I’d hold onto it as a display piece, but if you don’t have the space then I wouldn’t feel bad for selling it on or even giving it away.
I'd hold onto it as well, even if just for a display piece as you say. Nothing screams "retro games" more than a wood grain Atari VCS. I have one and mine doesn't even work (although my Atari 2600 Jr. does) and even so it makes a great keystone for the top of your vintage games shelf.
Unless you're being buried under an avalanche of the things with multiple duplicates of literally the same system, never get rid of any video game stuff. I've never met anyone who sold off some part of their collection who didn't regret it eventually, and usually more so once they get the itch to own whatever-it-was again and inevitably discover that in the meantime it's gone up tenfold in price.
I focus on what I want my collection to look like on display. If I can go a year or two without missing having it on display, then I get rid of it.
A tiny number of original releases don't run properly or at all on some 2600 Juniors or 7800s, due to a reliance on quirks that were changed in later versions of the graphics chip. Probably not a major issue for classic collecting, but if you're interested in modern homebrew, it could be worth considering.