Aww, I can't imagine lil Bailey humping anything... he is just too cute and tiny to have hormones like that. 
 
 
Max is not neutered and he doesn't hump anything. Funny how that turns out? Maybe once every couple of months he will attempt to hump our black lab, Dozer, but we tell him "no" immediately. That rarely happens though....  
I don't see a problem with them humping a toy. I would not encourage other dogs nor humans for that matter (its an act of dominance). 
