For me... it's 6 of 1, half a dozen of another.
We have toys that are 5 generations old (books also), and we have toys that break in a week.
For the ones that break (or in any other way become unusable)... they fall into 2 categories. Imagination time (aka use it in a different way) or recycle (ever notice the ones that break tend to be crappy plastic?).
IMEO... toys are meant to be played with and should *survive* such playing. The toys that are 5 generations old were built to LAST. Dolls were sturdy fabrics that can be flung down the stairs (and solid porcelain faces can be BASHED against marble and not chip or crack... solid high fire ceramic is *strong*... the cheap poured hollow ones on the other hand weren't meant for kids, and they were the step "down" -although they're "highest" quality now, back in the day they were hand carved and fired. The glazes were less permanent, but any potter or blacksmith could refire new colors on heads, and often did, it's why in old dolls, even though they *could* have made the heads attach permanently, they didn't)... but most people either had sturdy fabrics that could be mended as necessary, or carved wood which could be sanded out as needed. Other toys we have that belonged to my great X grandparents as kids were equally sturdy and mendable. Wood, metal, high fire clay, and fabric. And they've ALL seen much repairing. Heck, archeologists have found toys that have survived thousands of years that were obviously played with for generations.
A common phrase in my family's houses growing up is "These things happen." Ink stains don't "ruin" a toy in our family. Give it a few months to years and it'll rub off. Or they add "character". Rips get sewn up. Chips get sanded out. Worn pain gets repainted. Ceramic gets touchups or gets to meet a dremmel bit (I work in ceramic, so anything made of clay I can usually fix or replace). Noses get sewn back on. Surgery is often needed, and that's okay.
Typically, if a toy can't be mended (cheap plastic) I don't buy it. They're given, of course, but they have an expectedly short lifespan.
The only toys in our house that are treated "special" are electronic / techie toys. Like cameras, laptops, ipods, etc. My son has either had his own or used ours since he was a toddler. His cameras (still and video) are pristine after years of use. All other electronics, ditto.