In light of the security situation, and for educational purposes, MK Yoel Hasson (Hamachane Hatzioni) has proposed a law that would outlaw the sale of toy guns and other toy weapons that look the same as real weapons.

Hasson says that a child that played with toy guns will later more easily use a real gun. As well, when kids see adults, and their own parents, carrying guns, they will want to imitate that and also learn the techniques of how the guns are used.

According to Hasson's proposal, there would be a 5000nis fine (per day) for someone selling or marketing such toys. Hasson would allow an exception for the theater and entertainment industry and businesses that sell to those industries, or for other special interest parties.
source: maariv

In the article it doe snot say so, but I would expect that as long as the toy gun is altered in its appearance to clearly be a toy, it should be allowed, though that still goes against the reaosning supplied by hasson. Such an exception is used in the United State so people do not get accidentally shot by pointing a toy gun at someone  - it would be easily identifiable as a toy rather than a real gun. Though Hasson doesn't state such an exclusion.

I am not a big gun guy, but I flinch at taking away guns as toys that have been played with for decades.

Another point - considering that every person in Israel (with exception) has to join the army at the age of 18 and learns to use guns and other weapons, I am not sure his point of it being a problem that kids will try to imitate parents and be quick to use guns at an older age because of it is really an issue. They all learn to use the guns eventually anyway, and then they are also taught responsibility.