Why do you want something to be part of the display list? You say: It will, however, contain things to be displayed.
If you mean you want to compose displayable objects, e.g. doing something like:
var container:Sprite = new Sprite();
var image:Sprite = new some_lib_image();
var image2:Sprite = new some_other_lib_image();
container.addChild(image);
container.addChild(image2);
stage.addChild(container);
Then that is totally acceptable. If you want to create a class called ImageContainer that manages the adding and removal of images and use it instead of Sprite - that too is totally acceptable. I wouldn't call it a temptation but I wouldn't do it unless you were adding something worthwhile to the above code.
Is there a significant memory cost to needlessly extending the Sprite class?
Not particularly. The size of your class will generally be something close to sizeof(Sprite) + sizeof(instanceVariables[]) where instanceVariables[] are the new variables you declare in your class. I wouldn't worry about it. Composition is more costly than inheritance; that is needlessly using too many containers. In the general case I never worry about it but if I were to create 5000 particles in a particle system I'd try and keep each particle as simple as possible.