Finally thought of an intro for Stitches, one of the more recent neighbors (that I like) in my Animal Crossing town. He's cute and all, but I can't think of any other example of a living teddy bear, except for Winnie the Pooh, that isn't scary, even if it isn't the intention. Even Snuggle creeps me out.
The other mentioned bear is Mori Chack's Gloomy Bear, but he's supposed to be cute yet creepy, so it's cool. I'll have to get a Gloomy Bear plushie one of these days (if I ever see one in this podunk town).
But I still don't want a living one.