Seriously, that's what he's saying. Actually the exact line is "to be .. a toy soldier, or not to be ... a toy soldier. That is the question."
Grayson got to ham it up a bit in his role as a toy soldier that can't march in the school play The Toy School last week. He eventually decides that since he can't get his legs to march straight (he had some highly theatrical falls) he would be ... a nutcracker.