People say they Sid isn't really a villain because he doesn't actually know that the toys he tortures and kills are actually sentient. But the series never attempts to explain why toys pretend to be inanimate in the presence of humans. They commit to the act even when it puts them in immediate danger like when Woody almost let his head get crushed by an 18-wheeler. Even as they're facing certain death as Sid prepares to blow them up, their instinct to remain inanimate outweighs any survival instinct and they remain completely motionless rather than making an attempt to escape or plead for mercy. Even Buzz, who genuinely thought that he was a real space ranger rather than a toy, instinctively understood that he must stop moving and talking when a human enters the room. They have no such fear of dogs or other animals, this behavior is limited only to humans as far as we can see.
The real horror movie would be a prequel that shows what humans did to toys to instill such an overpowering instinct to remain still whenever they're present. What deeply generational trauma was inflicted on ancient toys that they still, to this day, become paralyzed with terror at the mere proximity of human beings?