Because the movie already heightens the toys to being alive the punishment is probably more representative of the emotions and desires of vengeance his sister had.
My friend's sister took a permanent marker and wrote her name and drew a stick figure on his G.I. Joe Terror Drome toy (one of the most expensive in the line at the time). No one hoped she would be haunted by Cobra action figures for her crime.
He even enjoys his work, it's one of the most thankless ones. we see he enjoys music while working.
Since he learned that inanimate objects are alive. What job would he go for? Bro isn't fucked up and working a crappy job. He is trying to save the toys he finds
How about the whole villains-have-rotten-teeth thing? When this came out in the theaters the first time, my best bud had bad teeth from growing up poor and neglected. Fucking felt terrible watching it.
Villains are stereotypically older fat queer bald men (e.g. Vladimir Harkonnen). These are all factors people have little-to-no control over.
Media will sometimes subvert those expectations, but most of the time the iconography matters more to the filmmaker than decency. It's quite fucked up the insecurities these portrayals breed, no amount of positive affirmation will make up for the fact that some natural body types are fundamentally associated with villainy in the Western visual canon.
Those are supposed to be inanimate objects. You know how many toys a kid destroys out of their curiosity and experimenting?
AFAIK he loves his dog and it loves him back (that's a win in my book), and he hasn't done anything bad to a single living thing (beside messing with his sister, but who wasn't messing with their siblings when little?).