Best Practice for removing a contact record who is no longer with their company but has activity

[marmstrong]

We are playing with the idea of creating a 'former employee' contact queue.  Has anyone done this and is it a good solution?

[JCoppedge]

Queues aren't supported for contacts, otherwise that might be a viable approach.

I was thinking of developing an Apexchange package for this purpose. If I could deliver the following:

1) Ability to associate a contact with mutliple accounts

2) Ability to mark a contact as inactive at one or all accounts

3) Ability to retain contact history at primary account, and copy contact history to a new account

Is it a big enough problem to pay for a solution?  Would you pay $1/user/mo for it?  Or a flat rate per org yearly?