IMO, a better alternative is signing your kids up for lessons/rides at a nearby equestrian center. For my neice's 7th birthday this year, I saw an ad in a local magazine for this equestrian center, and thought maybe they'd let her just come in and take a look even though she wasn't involved in their classes/camps. They were actually very welcoming! We went in and she got to learn about the horse, brush it, put the saddle and such on, and then they took her for on a pretty long trail ride. She had one on one time with the pony and the instructor. She loved every minute of it and it only cost us about $30! She even got a glossy photo to take home with her on the pony. They also have lessons you can buy per class I think for $50 and they also have camps for a bit more than that.
The lady who runs the center told us they have guests as little as 3 years old!
If you do have access to an equestrian center, it's a better use of your money and the kids will sure love it loads more than a stuffed horse...especially a $300 one. Plus, they may learn something and it's great exercise.