Does kitsch have its place? Sure, because it may evoke a smile among people who appreciate its playfulness or message. When selling a home, however, the tastes of the buyer must be considered in order for them to feel "at home" too. If the charm or humor of kitsch lies in some element of bad or childish taste, then it is risky to believe every buyer will respond to it favorably. They may not be in on 'the joke' like your friends, so it is safer to prepack these items for your next place.
Kitsch is defined in the dictionary as "art, objects, or design considered to be in poor taste because of excessive garishness or sentimentality, but sometimes appreciated in an ironic or knowing way". The effect is something like being tickled under the chin and told "kitschy-kitschy-coo" like a baby ... ugh!