Scott Klein has written up a great post on the benefits of removing the clock from your Menubar. A few months back now I did the same thing, but the clock eventually made it back into the menubar. I loved not seeing the time, but I also hated not seeing the time.
What I found is that it became a great way for me to not count how much time I had to do things (e.g. I have only an hour until the meeting!). I decided to put the clock back into the Menubar because sometimes you just need to know how much time you have to do something and sometimes you need a reference point for when things happened during the day.
I highly encourage you to try removing the clock if you find yourself constantly staring at it. Since putting the clock back in my Menubar I have found that I don’t look at it nearly as much as I used to.