I think it's really sweet and the parents provided the toy and didn't ask that neighbors go do anything special, spend extra money, or whatnot.
Not sure. It kind of assumes people will be home and participating, doesn't it? I am also thinking there is a likelihood of more than one kid dressed as an angry bird so you would still have to ask for names. Then a kid getting candy might see the toy and reqiest one...
I guess it would be a chance one would have to take. I don't know how the trick-or-treat works in your neighborhood. We have a TON of kids and lots of trick-or-treaters. Granted, there are people who are not home or do not participate, but for me, the hit and miss would be workable and probably successful. I would probably be able to talk face-to-face with a lot of the parents on the street. My elementary school is walking distance, so there's a fair amount of parental interaction. I could see this being successful in my area, but yes, there are logistical issues.
I don't see the toy vs candy being an issue. Nobody really sees what ends up in the bag and I think they would prefer the candy. One year we had a lady handing out full sized candy bars. The thrill!!