Gigi - I honestly don't think there's any harm! It's not her primary environment, and it's not really 'harming' the children who have them, the toys are just not doing much for their development in themselves, if that's what the parents are hoping!
There's much more to development than toys - there's adult modelling, movement, social interactions, daily activities you take for granted etc. If you're leaving the child in a room with these push button toys all day long with no other stimulation, then that's going to disadvantage the child...and I don't think any of us are doing that
My main focus has been on keeping 'things' down and not calling them 'his' as much as possible. The only things I've really called his (as in 'your x') have been his sword that DP made for him and his bed! I got a bit sick of hearing friends tell 'reassure' their kids that DS couldn't play with a certain toy because it was 'theirs', or that it was ok because it was 'theirs' and they'd get it back. With DS I call things 'the x' and don't attach ownership to it so that when someone comes over to play with it and he starts to look alarmed I tell him it's ok, that child can play with x because we share. I don't even do the 'he/she had it first' - unless there's been some blatant snatching going on (possessiveness rather than toy curiosity in a young child) I encourage DS to just give it over and tell him he can play with it after if he still wants to. Usually works It doesn't teach him to be a push over, it teaches him it's not worth the battle cos it's just a thing and he can move on.
Anyway, that's my homage to the idea that we don't truly 'own' anything, and that 'attachment is at the root of all grief' and if you're gonna be attached make attachment to people and experiences, not things that can break, be taken away, not bought etc. I just do what I can and that's all we can do as parents