Does the LEGO Group condone war toys?
Kind of.

From the LEGO Group's Corporate Responsibility report:


  Guideline for weapons and conflict in LEGO experiences
  
  A large number of LEGO minifigures use weapons, and are – assumedly – regularly being charged by each others’ weapons as part of children’s role play. In the LEGO Group, we acknowledge that conflict in play is especially prevalent among 4-9-year-old boys. 
  An inner drive and a need to experiment with their own aggressive feelings in order to learn about other people’s aggressions exist in most children. This in turn enables them to handle and recognize conflict in non-play scenarios. As such, the LEGO Group sees 
  conflict play as perfectly acceptable, and an integral part of children’s development.
  
  We also acknowledge children’s well-proven ability to tell play from reality. however, to make sure to maintain the right balance between play and conflict, we have adhered to a set of unwritten rules for several years. In 2010, we have formalized these rules in a guideline for the use of conflict and weapons in LEGO products. The basic aim is to avoid realistic weapons and military equipment that children may recognize from hot spots around the world and to refrain from showing violent or frightening situations when communicating about LEGO products. At the same time, the purpose is for the LEGO brand not to be associated with issues that glorify conflicts and unethical or harmful behavior.


Page 26 of the 2010 report.