Yeah my son had a doll baby called Penny when he was little, he'd push her around in her pram in town and change her clothes and nappy. He adored Penny, even though she was falling to bits - her head was hanging off and she was missing a leg (it was my baby doll as a LO aswell).
I used to get shit from old ladies in town but I didnt care. My Dean loved his Penny. It didnt bother me at all him having dolls.