I don’t think it should be banned, but the manufacturers are clearly morons that have no concern that its existence reinforces every leftist stereotype about firearms. The gun looks like a parody weapon designed by David Hogg, just to show fellow Democrats that all gun owners are heartless child killers.
Making a gun that looks like a toy is problematic. For me, the problem I see is that it undermines the expectation that a toy will be marked in such a way that a cop can identify it as a toy and not shoot the holder of that toy if if that holder would otherwise be deemed a threat. Now it appears that we are embarking on a new paradigm that an operational gun will be disguised as a toy, collapsing the identifiability of toy-vs-firearm, which will lead to more people getting shot for holding what actually turns out to be a toy. And under that paradigm I would not fault a cop for shooting to incapacitate or disarm a person deemed a threat because the cops couldn’t determine the threat of the object in the person’s hand. (And I think we all can agree that such a condition would lead to a lot more unnecessary shootings.)
All guns are dumb. In fact, no gun can think or act on its own. If you wish to use that adjective in connection to this gun, apply it to the gun maker.
I suspect that that may have been the motive of the manufacturer … to demonstrate that some people will want to ban it for no other reason than for how it looks.