I want to say, 'no,' it's not healthy for them but when you think about how expensive things have become nowadays, it's pretty common.
IMHO younger parents often do this. Think about it - as we get older, we get wiser and more comfortable in knowing that material things don't = love. While I didn't spend quite that much on my son when I had him in my early 20's, I can say that my daughter definitely doesn't get 'spoiled' like that because I know that either she'll get bored of the toy and at the same time she'd much rather spend quality time with me / her father than to play with toys.