That was the biggest problem I had with this movie. Every other movie Toulon was not evil. Seems like they made 3 to apologize for 2. If it was changed that the bad guy from the original puppet master was resurrected instead might have liked it better
shareIt was likely David Pabian's idea. I'm not sure why he went in this direction, especially after Toulon had been established as a good guy. Maybe it's just the way the story went. They better explored Toulon's back story, introducing us to a tragic character mad with love for his dead wife, and suddenly a woman who looks so much like her comes along. A major cliche for a lot of villains.
A fan theory suggests Toulon is simply suffering a sort of zombie induced insanity as opposed to him having always been secretly evil. After all, Ghost Toulon in 4 certainly wasn't evil.
http://www.freewebs.com/demonictoys/