In my situation, it would have been time out for the child, not the toy...and depending on the child and the exact situation, I might have then required the child to play only with soft things/baby toys/something like that, for a period of time (whatever seemed reasonable...kids don't need long punishments because they forget that they are being punished, or forget why).

I would have removed the child from the situation, sat him down, and explained that we don't throw toys because it can hurt the toy and can hurt other people. I would have pointed out the baby crawling nearby and that it would have hurt him and made him cry if the toy had hit him. Then I would tell the thrower that next time if he wants to throw something he needs to [find a ball/wait until outside time/whatever is appropriate]. Sit him in a time out, then when that's up go over it all again. Letting them know WHY what they did isn't okay and what they CAN do next time is a big key. Once the child is old enough and verbal enough, you can guide them through this conversation--"Why were you in time out? [wait for answer, gently correct if their answer is garbled a bit] Why was that no okay? What's the better choice next time?"

I reserve taking toys away for times when two or more kids are fighting over the toy and can't resolve the situation. And for toys that get stuck in the mouth/up the nose (blech...) by anyone over the age of about 18 months.

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