Like Codrea says, is this ATF ignorance and/or stupidity, or malice?

A local business owner is flabbergasted after a shipment of 30 toy guns for his store was confiscated by ATF agents in Tacoma.

It gets more flabbergasting:

Special Agent Kelvin Crenshaw said the toys can be easily retro-fitted into dangerous weapons.

"With minimal work it could be converted to a machine gun," Crenshaw said.
Except, among the 'minimal work' needed would be
The WE TTI M4’s lack any sort of functional gas tube which is integral to an AR15’s operation

The upper receiver of an AR15 fits onto the lower of the WE TTI M4
The stock trigger pack in the WE TTI cannot strike the firing pin of a AR15 bolt

The body of the WE TTI lower is several mils thinner than an AR15 lower, and shims would be needed for any AR trigger pack to work

The trigger pack of an AR15 appears to be able to fit onto the lower receiver of a WE TTI M4, one of the AR15 trigger pack retaining pins is impossible to insert without major modification, and the hammer isn’t operable with the WE TTI lower.

So essentially these Airsoft replicas cannot even operate an AR15 trigger pack without heavy modification with a precise tooling system operated by someone who knows the specific measurements to drill and tap the WE TTI lower receiver.

And, getting even better,
It gets better. The business owners victimized by this have been told they need to file a Freedom of Information Act request in order to see the procedures ATF used to determine these toys are readily convertible. And as noted in this YouTube video, ATF's "expert" authority on the matter initially tries to insert a magazine backwards! Seriously!