I used to re-use, until I read an interesting forum. Google "is it stealing to re-use stamps", or something like that. I was convinced by the arguments presented that this activity amounted to the same thing as stealing. By re-using stamps that have already been used you are essentially getting someone to do paid work without paying them. So for me it's not a question of whether it's illegal, or whether you will be pursued, its a question of values.
Sometimes I sell my uncancelled stamps on
ebay...thereby placing the ethical dilemma on the next person.