In my comment on Sept 15 I mentioned cjw-latex as part of the historical context and this was developed both by Barbara Beeton in her interesting answer later that day and a subsequent amendment to the question. Despite looking through a heap of dusty old TeX books I have not found other non-local use of \nothing in TeX.
A related question: Nice-looking empty set? discussed the various shapes of the empty set glyph and this led me to consider other options given the history of the symbol in mathematics.
Prior to Bourbaki the empty set was denoted by {} and that is still sometimes used (e.g. see the Wikipedia and Proofwiki articles on the empty set).
The empty set symbol proposed by Bourbaki was the Norwegian capital O with slash (see "The apprenticeship of a mathematician" by André Weil, English translation,p114 on Google Books also cited in the section on "The null set symbol (Ø)" in Earliest Uses of Symbols of Set Theory and Logic. This implies that, for those wanting authentic Bourbaki group notation, the empty set symbol could be \O (see the TeXBook, p52, on accents where the Scandinavian slashed-O is defined as \O but not proposed for the empty set notation). So, whilst I have not yet found an authority for it, it seems reasonable that \O could be considered as \nothing and the later \varnothing its alternative. In practice there would be no reason to formally define \nothing for this purpose as \O is shorter and, arguably, as meaningful, especially for those used to the Bourbaki notation and its origin. (On a lighter note, it could also avoid confusion between \nothing and \notin in casual conversation :-)
For comparison, the four simple candidates for 'nothing' or the 'empty set' (\phi and \Phi are not candidates) are shown below with \not= to ease comparison of the angle of the empty set slash (a concern for some users), where appropriate.
\documentclass[12pt]{article}
\usepackage{amssymb} % for \varnothing
\begin{document}
\begin{enumerate}
\item $S \not= \{\}$
\item $S \not= \O$
\item $S \not= \varnothing$
\item $S \not= \emptyset$
\end{enumerate}
\end{document}

In practice there has been overlap between the use and definitions of these symbols, in addition to user preferences for what the empty set notation should be.
For example, the definition of \varnothing in msbm.etx
\setslot{emptyset}
\comment{The symbol `$\varnothing$'.}
\endsetslot
This has been seen even in "The LaTeX companion". The following extract is a letter to the editor of UK-TUG magazine Baskerville Vol 5 No 2 from David Carlisle:
The comments on the inadvisability of redefining user level commands
are valid, but the example in question,\emptyset in the AMS
packages, is just due to an error in the first printing of The
LaTeX Companion (as noted in compan.err in the LaTeX
distribution.) The ‘amssymb’ package does not redefine \emptyset. It
still looks like a 0 with a line through it. The same glyph as in
plain TEX. \varnothing is a slashed-circle.
Actually this raises an interesting side issue. The error in the
Companion printing was due to an error in the styles for Lucida
fonts. (The Companion does not use the cm or AMS fonts). As Lucida
does provide both glyphs, it was simply an error to have the names
interchanged, but consider a hypothetical situation of a math font
family that only provides one slashed-closed-curve. How visually
dis-similar to ∅ may it be before it becomes unacceptable to assign it
to the command \emptyset? For text fonts large differences are
acceptable. ‘Q’ does not look much like ‘Q’ [in a different font]
but both are
accessed by ‘Q’ and any differences are accepted by the reader as
differences in font design. In mathematics the situation is not at all
clear...
This was in response to an article Maths in LaTeX: Part 3, Different Sorts of Mathematical Object by R A Bailey in the previous issue.
The relevant lines from compan.err are
-* Page 219, 222 (DRo,FMi)
The \varnothing and \emptyset do show the wrong
character, ie need exchanging.
Finally, there are some occurrences of \nothing in TeX Live 2011, connected with Cyrillic fonts:
$ grep -r '\\nothing[^a-zA-Z]' *
2011/texmf-dist/doc/fonts/ec/tcstdedt.tex:\def\dofonttest#1[#2]#3\nothing{%
2011/texmf-dist/doc/fonts/ec/tcstdedt.tex:\def\dofont{\doentry\expandafter\dofonttest\fontsize[]\nothing\Dofont}
2011/texmf-dist/doc/fonts/ec/ecstdedt.tex:\def\dofonttest#1[#2]#3\nothing{%
2011/texmf-dist/doc/fonts/ec/ecstdedt.tex:\def\dofont{\doentry\expandafter\dofonttest\fontsize[]\nothing\Dofont}
2011/texmf-dist/source/fonts/lh/tex/cfstdedt.tex:\def\dofonttest#1[#2]#3\nothing{%
2011/texmf-dist/source/fonts/lh/tex/cfstdedt.tex:\def\dofont{\doentry\expandafter\dofonttest\fontsize[]\nothing\Dofont}
2011/texmf-dist/source/fonts/lh/tex/cod-edt.tex:\def\docodetest#1[#2]#3\nothing{%
$
\varnothingis a symbol for an empty set. I guess this could have been called\nothing, but there is probably a good reason that it isn't. – Peter Grill Sep 15 '11 at 04:19\varnothingcomes fromamssym.tex, which was the analog of amssymb for the old amstex package which ran on top of Plain TeX. Maybe @barbara can trace the history better than me, but I presume that at the times there were people who used\nothingfor the empty set, maybe in some specialized (and now defunct) format. Or just they didn't want to take over a good name. – egreg Sep 15 '11 at 09:09cjw-latexdocumentation(not included in TeX Live):436 \swapdef{\nothing}{\varnothing}, implying that there was another package at that time that defined \nothing or that it was expected to be defined locally. – mas Sep 15 '11 at 09:57amssym.texwas the original andamssymbshould be considered the analog. (but i'm being nit-picky.) – barbara beeton Sep 15 '11 at 18:38\varnothing. i have also checked a copy of the second printing of "joy", printed with corrections 1986; it has only\varnothing, and since i also have the original errata/changes list (which i compiled), which shows no evidence of a change to this symbol, i am completely certain that\nothingnever existed in an ams package distribution. it may have been used informally by some individuals, but not with "official" ams blessing. – barbara beeton Sep 24 '11 at 19:09ams-texupdate", undated, but filed with file printouts with date stamps from september through december 1989 and a letter dated "4 oct '89" concerning progress onams-texv.2,\varnothingis listed among "miscellaneous symbols" which otherwise comprise the ordinary symbols ofamssym.stycovering themsamandmsbmfonts. nothing about\nothing. – barbara beeton Sep 24 '11 at 19:19