There is already a simple way to destroy items, no need to add a further action and have people complain they accidentally destroyed something like they do when they hit craft instead of upgrade.

Basically do what humanity has done forever, chuck trash somewhere remote/into the water and forget about it (except no longer term consequences in game, and you won't find dead Necks washed up and strangled by tossed out rags).

Any loose items left outside Player Base Radius
( https://valheim.fandom.com/wiki/Player_base ) will despawn within a couple days.
Anything dropped into 2m+ deep water despawns much quicker.