Good post. I had literally the exact same thought when I saw the article title.
Prove the identity through DNA, then put his head on a pike outside the front entrance to the Pentagon. For extra credit, let's pay down the national debt by setting up a stand in front with baseball bats for rent, $1 per swing. By the time OBL's done with, Saddam will have been executed and we can put up his head.
Nah, shrink his head and put it on the key ring that opens the front door of whatever they build on the WTC site. Then, after televising the grand opening, stick a firecracker or two in his ear(s) and blow it up.