If you enjoy Show and Tell, change it a little. Have the students bring in a book from home and tell what it's about and why they like it. Send a note home telling the parents that it's the childrens' responsibility to
take care of their property and return it home when they are finished.
In response to the incident with the toy...let me ask you this:
If your child had an expensive toy (let's say Gameboy) and a teacher confiscated it and then misplaced it...wouldn't you as a parent be upset and demand that it be replaced??? You have to remember something...it's not always about monetary value or how
insignificant the object is...it belongs to that child, whether it was appropriate to have in class or not. I know it sounds crazy...but situations like this happen all the time. Next time, I would have the student put the toy in his backpack.
I would definitely not cancel special privileges for any of the students...it just wouldn't be fair, in my opinion.