We have these great Baby Einstein videos that we love to watch, and then afterwards we put some games on the computer, followed by hours of TV!
Jack (5 mos. old) has a couple of Lamaze fabric toys that crinkle when he squishes them. As far as toys go, that's just about all he cares about right now, and he could easily live without them. He favorite "toys" are my hands and burp cloths. He loves to wave the burp cloths in the air, stick it in his mouth, etc. He also loves to explore my hands, suck on them, etc. For the most part, he is very content with simply exploring his environment. One day we spent 15 minutes just smelling peppermint chapstick together, and he had a great time.
Someone got us this weird LeapFrog Learning octopus. When you squeeze one of it's tentacles, it reads off the names of colors in spanish and english. Then it spouts off lame ryhmes about colors (and when I mean "lame", I mean it- "Purple showers, spring flowers", and crud like that. If we're doing poetry, I would rather read him some Shel Silverstein). I let Jack look at the toy for a bit, and saw that he was spending most of the time processing what was going on, instead of exploring. Since I think exploring and open-ended discovery is way more important than pseudo-learning with so-called "developmental" toys, I gave the octopus to the dog and everyone was happy!
If you haven't already, read "Buy, Buy Baby". It really put things into perspective for me.