I'm a network engineer for a major credit card company and am also a Microsoft Certified Systems Engineer, Cisco Certified Network Professional, and Cisco Certified Design Professional (just qualifying the source of this post.) =)
Just for the record: Most common implementations of Ethernet use 10Base-T for 10Mbps operation and 100Base-TX for 100Mbps operation. There are half-duplex and full-duplex versions of both of these. All of these combinations use a 4 wire, or 2 pair configuration. The wires used are 1, 2, 3, and 6. Ethernet was first commonly used in 10Base-T mode at half-duplex. In half-duplex operation, one pair of wires is used for transmitting information and also for sending control information. The second pair is used for receiving information and for CMSA/CD (Carrier-sense Multiple Access/Collision Detection) operations. During half-duplex operation, when two hosts are communicating, only one can send at a time. The other host listens and receives the information, waits for the transmission to complete and then can send. Hubs are somewhat "dumb" devices in that they simply repeat information they receive on one port out to all other ports on the hub. All devices use the CMSA/CD protocol to make sure that the wire is clear to send. If two hosts do happen to send at the same time, a collision results. So once again, in a configuration using a hub, only one host may transmit information at any given time. What this amounts to in terms of usable bandwidth is this: suppose you have 8 hosts connected to a 10Base-T hub. 10Mbps is the maximum transmission speed of the hub and all users must SHARE this bandwith, which potentially results in 10/8 Mbps or 1.25Mbps of bandwidth per person. Frankly, with switches being so cheap to purchase these days, I don't imagine anyone using a hub either at work or at home anymore.
Switches are more intelligent devices since they act like multi-port bridges. The switch learns the MAC address of the source and destination hosts and switch messages in unicast format to the specific destination. Because of this, on a 10Base-T switch, everyone truly gets 10Mbps operation.
Now for the difference between half and full-duplex operation. I already stated how half-duplex operation works. Full-duplex operation is where the CMSA/CD protocol is turned off and the two wires dedicated to it are enabled to send and transmit as well. What this results in is both hosts are able to send AND receive at the same time. On a 10Base-T switch, since both hosts can send at the same time, this becomes a theoretical 20Mbps operational speed. All that I've said about 10Mbps operation also holds true for 100Mbps, duplex and all!
None of these implementations use all 8 wires for their operations. While there are configurations such as 100Base-T4 out there that use all 8 wires, they are not in common use. The common Category 5 wiring is UTP (Unshielded Twisted Pair) wire and its integrity is determined by how many twists per foot there are. The specification for 10Base-T operation is based on the amount of time it takes for an electrical signal to traverse the wire. In other words there is a max cable length of 100 meters (300 feet) for 10Base-T (and 100Base-T) to operate correctly, and in order for communications to function correctly, the electrical transmission must occur within a specified amount of time. For 100Base-T operation, the IEEE just divided the max transmission time by 10. It is true that 1000Base-T configurations DO use all 8 wires, and so far as I've seen switches for this operation are just now getting into the price range for home use.
The most significant reason I can see for NOT removing 4 wires from your preconfigured Cat5 or Cat5e cabling is that there are twists in the wire which reduce EMI (ElectroMagnetic Interference) which allows for correct operation; for that reason I wouldn't be yanking the wires out. I suppose cutting them off wouldn't hurt, however as a previous post had indicated, if you ever want to use 1000Base-T, you would have to recut the wire. Hope this helps.