DS has a cuddly dog toy, which he's had since he was very small. It has always been "the" toy that he wouldn't go to sleep without and cuddles when he is upset.
Although he is now 8, DS and Doggy are still inseparable. As soon as he gets in from school, DS rushes to find Doggy and gives him a cuddle and a kiss. He also frequently chats to him (along the lines of "how are you Doggy? Do you want a bone?). He will also come and chat to me pretending to be Doggy, so I have to talk back to the dog. Sometimes DS will ask me to pretend to be Doggy so he can "talk" to the dog, and I generally humour him.
DH is of the opinion that all this talking to Doggy and pretending to be Doggy is babyish and I am treating DS like a baby by continuing to perpetuate it. He thinks I should stop (he has no problem with Doggy remaining a toy just to be in DS's bed or for when he's upset). I think it's lovely that DS has such a good imagination and can't see any harm in it.
DS otherwise does all the normal 8 year old boy type things - he likes Star Wars, Lego, computer games and arguing with his sister. He is doing well at school and is liked by his teacher. He has 3 close friends and also is part of a wider friendship group that all play tag at break times. He goes to Cubs and Karate, both of which he enjoys. I don't see that his Doggy "obsession" is affecting him in any way or setting him apart from his peers.
So, who is being U, me or DH? Should I stop treating Doggy as though he's real?