Someone, maybe a family counselor, needs to discover the root of the problem. Some friends of the family have a four year old son. He is constantly screaming, kicking and hitting his parents, sister and friends that come over. His parents have tried to help him all that they can, but he seems to only get worse. He can be a very sweet boy at times, and I don't think he even realizes that what he is doing is hurting other people.
Nothing seems to be working.
The main difference is the ease of cleaning if the are becomes infected. However, almost any toy can be sanitized with bleach, washed in hot water, or bagged for ten days. Let children have fun things, period. At our school we cannot have cloth hats only plastic ones. Lice cannot live on the plastic but they can on the cloth.