The toy fair was huge and awesome. I got kicked out of a few booths, let into a few others, and talked to a lot of really interesting people (for the most part..). Here are some of the coolest things I saw:
Cloud-B creates digital plush/plastic toys that aid children in falling asleep. Some of their products include "Dozy Dolphin" (interactive sounds/sleep sounds), "Sleep Sheep" (sleeping sounds), and "Twilight Turtle"(displays stars on walls of room through its shell). Here is a photo of the Twilight Turtle:
Hex Bugs (http://www.hexbug.com)
These guys were set up in the youth electronics section, were super friendly, and had AWESOME little robot bugs with a crapload of sensors in them like light, motion, infared, touch, direction, etc. Their site explains things very well, but here is a video I found online of the bugs in action (actually shot at the toy fair).