It's lucky I don't have kids. I'm afraid I would spend way too much money on toys that they wouldn't be allowed to play with. Children's toys should be simple, colorful and safe. And if you have to pay $100 for a set of blocks in order to fulfill those standards, so be it.
I love the ShapeMaker and PlayShape wooden blocks by Miller-Goodman. They remind me of a bunch of different things I like: the wooden toys created by Alexander Girard, AJ Fosik's rad spirit creature heads, designs by Paul Rand + Charlie Harper, Mary Blair's It's a Small World Ride, and 60's Scandinavian dishware.
This animation is pretty darn cute too:
More at the ShapeMaker Flickr pool + PlayShapes Flickr pool and at their shop.