When my Neo was just a baby he started humping!
From everything that I have read, and MY vet's advice-- it is perfectly harmless for your baby to hump his toy. I bought Neo a "Phucky" Duck for his romantic urges, and at 8 months old he was neutered. The vet said that humping is actually good for your boy, as it helps "seat" his testicles and make for less of a chance of undecended testes. Of course, there is a time and place for these "intimate moments", but that is more behavioral than unhealthy.