slim - I am technically Muslim - born to Muslim parents, in a Muslim country, although never believed nor practiced. Fortunately, this was a country where they didn't kill blasphemers, or yours truly would not have lived long enough to correspond with you on MN, but it is a rare Muslim community indeed.
So, trust me, I am quite familiar with what Islam forbids (if only to avoid personal hurt). All depiction of Mohammad is forbidden. He forbid it himself, so that his pictures/sculptures etc would not be worshipped. This is why there are no depictions of Mohammad.
There were and are, however, quite many depictions of other persons in Muslim societies. Drawing yourself or others is not a problem. Example: Miniature art during the Ottoman Empire.
All of this is not relevant to why this woman was arrested in Sudan, though. A teddy bear is not a human figure, let alone that of a man. Ergo, it is not a depiction of Prophet Mohammad. QED.
Muslim Renaissance will come, but it will get worse before it gets better. A lot of blood will be shed before people grow up and decide not to impose their own deities on others. Possibly in our lifetimes, but I will not be holding my breath.