Aidyn has his blankies - it used to be his wrap when he was a newborn, and he grew very attached, so I cut it into quarters for him. He still sleeps with it these days.
More recently he has become attached to a beanie baby toy ( an owl) which he got for his birthday... owls are his favourite animals, and this toy now has as much status as his blankies... so I think its possible to introduce a cuddle toy at a later age as well!

I personally cant see anything wrong with them, as it adds to their feeling of security and is comforting for them