On the subject of "too fancy for mass production", check out these puppets from http://www.craftzine.com/They have LED lights inside, so when you squeeze them their faces light up. I would like to try making these some day for my own collection.
How to make puppets that can be donated to the IWK for the kids.
On the subject of "too fancy for mass production", check out these puppets from http://www.craftzine.com/