Oh, he's so adorable!! Love the smile! And yes, he will absolutely notice if you try to replace his beloved toy. Gracie Ruth's favorite toy growing up was Duckie. I went out and purchased a replacement knowing at some point it would be going to Toy Heaven. Exact same toy, she'll have nothing to do with the inpersonator. Fortunately I hadn't actually thrown Duckie away, so I gave it back to her and she still prefers it over the new one.
If you decide to replace it, I would recommend not getting rid of the original until you're sure the replacement has been 'approved'.