I have framed silverware in shadow box frames.
You could use a fabric as a mat that would complement the silverware and your decor.

My SO had his eagle scout medals from the 50's-60's framed. Do something to show how special they are to you and they will stand out. He has received so many great comments.

Why did you decide against using them as utensils?

Why not use them? Using silver often, hand washing it and drying it with a soft cloth is the best way to preserve it.

I like the shadow box idea!

Shadow Box seems like a do-able idea, but I fear you will stop seeing them once they are on the wall.

Why not try using them on special occasions - I have some pieces of my mother in laws as well as pieces given to me by dear friends that I use for holidays, so they can be 'with' us at the table. Also, I have one spoon that I use with a crystal jam holder for a special breakfast treat on weekends.

I would use them. :) Grandmas very rarely bought things just to sit around and be pretty. I really love the shoe box idea. Every time you pull them out, it will be like a gift from grandma, and you can think of all the happy holidays you spent with your family at grandma's every time you use them.

Use them. You have three pieces that would make excellent servers (I love the berry spoon). And the teaspoons could be used as sugar spoons or simply to stir your tea. Use them.

You could bring them to a silversmith and have them made into small vases, picture holders, barrettes, etc. I bought some from a flea market years ago made from the same design as my grandma had, and love them. For example (not an ad, just random first find on Etsy) http://www.etsy.com/listing/60508295/vintage-silverware-flower-vase-recycled ... Mine aren't from my grandma (who knows who scooped those up) but everytime I see them I think of her.

i just recently saw windchimes made out of silverware. they were really cute!

If you don't mind drilling a hole into the handles, you could turn them into hooks. Just bend into a "U" then either mount them with screw) on a board or plank, or directly to the wall depending on your needs/decor.

Use them. They'll get more beautiful over time.

And as my father once said to my mother:
What are you saving the china and silver for?? Your next husband??

From then on, we saw it all every Sunday and special occasion. I have them now.

Assuming you don't want to use them what about placing them artistically in a glass-based lamp (maybe two) and using the lamps on a sideboards in the dining room?

put them in a vase like a flower arrangement??

i would paint them and put them on a wall or in a shadow box with maybe a picture of granma at a table

I know if my grandmother gave me one of her prized possessions like her silver or her china she would expect me to use it and take immaculate care of it just like she had. Now not saying that she wouldn't mind me putting them in a shadow box as long as I could take them out when I host a dinner party kinda thing. (That and polish them because Grandma always took great care of the stuff she had). So I guess where I'm going with this is think of what your Grandmother's wishes would be and maybe make a compromise. and IMO I would never take a family heirloom/antique and bend them into hooks! If you have ANY family members that would know that that was Grandma's silver all bent out of shape they might just have a heart attack or go ballistic on you. I know a few in my family that would go ballistic on me LOL!

If you use them regularly you don't have to polish them.