Is there any real benefit of an honors designation? I am currently an undergraduate major in both physics and chemistry. It is possible for me to acquire a BS in both areas, departmental honors in both, and a delegation from the honors college in four years, but is this a wise use of my time?

An honors designation at my university requires 5 classes all 3 credit hours each. The only real immediate benefit I can see is early registration and the classes do not affect my GPA if failed, but the early registration isn't as useful to me because to the amount of credit hours I already have.

So my real question is, should I drop the honor college in favor of other opportunities? Without the honors college, I have the ability to take more courses related to my degree and even graduate courses. It also allows more time for internships and experience outside the academic setting. On the other hand, how beneficial would an honors delegation look on my degree or transcript? Which details do employers weigh more? Does it matter to colleges for graduate studies?
I can't speak to employers or grad school applications but my experience with my honors college has been overwhelmingly positive, and it's requirements are far more than yours. (Not to bad talk your honors system, just stating.) 

You will learn more and in the end, isn't that what you're looking for? It also opens up scholarship opportunities and networking chances. 

Plus, it goes a long way toward making a large school (if you're at one) seem smaller and friendlier. 

To me, you have described no real reason not to do it.