Well, fantasy is fantasy, but it's always been beyond me how there's so many Nintendo characters with no legs. How do they run and move their feet?
As for Toad, I don't study the bottom half of his body a whole lot, but based on my memory and the above pictures, it seems to me that he used to wear something akin to parachute pants, but he now swaps back-and-forth between those and a pair of Pampers. He's only got legs when he needs 'em--fungi grow weird like that.