Of course, converting to fiat will give you the most options, but there are some places where you can spend Steem. @steemshop is an up and coming one. SteemVerify.com is a verification service that any Steemit community member can utilize anonymously and securely. Also, SteemGyft.com - Exchange SBD/(steem soon) for Amazon Gift Cards.

You can, of course, use steem to do transactions with other Steemians. I'm a musician and I accept steem in exchange for performing music for you.