I cut hair, wrote on dolls, cut the hair of plush toys, wrote on Monopoly money and generally repurposed toys for other uses. I don't think there was a toy that got altered that I really regretted. And nothing was replaced, so I did eventually learn that if I really liked something, I had to take care of it. Some of it is destructive behaviour, but I think some it of it is about creativity and using something meant to be used one way in a totally different way.

That said, I would put the special dolls away.

Also, I had a friend who was given a bean bag toy as baptismal gift by Margaret Atwood. Because of who it was from, he was never allowed to play with it or touch it, and it's still in his dad's library (and my friend is in his 30s). What's the point of giving a child a toy if they can only admire it from a distance?