Non-stick pans are fine if they are never heated above 500°F (260°C) and never scratched. In general, you probably shouldn't regularly use a nonstick pan for longer than 2 years.
If it is scratched or heated above what it says on the label, then yes it is absolutely toxic.
I'd love to know more. I'm sure that I've scratched and overheated every pan I own.
... or just avoid the risk entirely.
Why is scratched a problem? They use the same stuff in medical implants. It is chemically inert if you don't overheat it right?