User blog comment:DancePowderer/A Crack in Its Utopian Armor/@comment-5962458-20130807203706

Nice blog.

I think the toy making is connected to the Smiles production. People's bodies are turned into toys and their essence is used to combine with the SAD and produce an artificial devil fruit. That also explains the "why turn them into toys" question. The people that get turned are the losers of the colloseum fights and the people opposing DD's dominion. The 500 dwarves are there in order to use their streangth and opperate the factory.

I don't know why people are not allowed in toy houses and the other way around, but i believe the midnight rule has to do with the memmory lose. People have to be indoors at exactly that time when the day is starting so that the "spell" can be renewed. And TSoR and Rebecca broke that rule and that's how they regained their memmories of each other.