You may all be too young to remember (...), but about 20 years ago, there was a very famous monthly magazine called "National Lampoon." One month, the cover showed a photograph of a cute dog, looking sad, with a gun pointed at its head. The headline on the magazine was "Buy this Magazine or We'll Shoot This Dog."
Even though National Lampoon was famous for its sarcastic, sardonic and even occassionally "sick" humor, this cover created quite a "firestorm," and set off a national debate about the "limits" of "humor," and when "taste" becomes "offense." No one was questioning their right to use that cover; everyone supported their First Amendment right to free speech - especially since there was no question that it was a joke; no dog was going to be killed, and everyone knew it.
However, in the case of "save toby," there is no such understanding. In addition, while buying the magazine would have cost the same with or without that particular cover, it certainly seems that the man behind "save toby" is engaging in a borderline form of extortion. Certainly, no one is forced to donate, or buy any of his merchandise. And I think anyone who does is an idiot, unless they are doing so in the belief that, like the National Lampoon cover, no real threat exists, and the person simply wants a "save toby" shirt or hat or whatever.
On the other hand, if no real threat exists, the man behind the scheme may be guilty of fraud, since he is deliberately misleading people into giving him money. It would be one thing if he was going to donate the money raised to an animal shelter, or some other worthy cause. But there is no indication that he intends this.
Given this, if I had the time, I would probably begin a massive campaign against this guy, since I think what he is doing is at best repugnant, and at worst fraudulent and borderline illegal.
Peace.