I take it nobody's ever confided a secret in your toy best friend, especially when "daddy won't stop hitting me". Now allow said daddy full access to conversations the child has had in confidence...fun times.
A bleak example yes, but also a real one. There's too much going on with play and conversation, and frankly I don't really see the point in having conversations recorded by a toy. Process the data for a pseudo AI learning interaction with the child, but actually storing full recordings? Unnecessary.
And those with tin foil hats would suggest this is the start in getting young children used to permanent surveillance.
+1 to Kamdar. At what age do parents learn to start respecting the privacy of their kids? If I learned that my parents had been spying on me via my toys, I'd be pretty pissed. When my kid arrives, I sure as hell won't be spying on them (beyond obviously the baby monitor to make sure they're OK which is pre-speaking age anyway). But then I'm not somebody who would be uploading recordings and photos of my kids to Facebook etc anyway. How old should they be before they deserve respect?