You might be able to find a super lightweight desktop distro out there (I think Damn Small Linux can run on those specs?) or you could repurpose it as a basic server of some sort like you mentioned. Unless you wanted to invest in some cheap old ram to throw in there and maybe make it a bit faster, then I think those would be your best options.
That’s why I never got why TPUSA people go around “debating” people on college campuses. They never actually want a debate, they just want to tell you you’re wrong.