Megos are based on other forms of media like Marvel Comics, Star Trek and Star Wars. Most of the Megos in this are based on Marvel superheroes. The characters are mostly caricatures of the original characters. For example, Iron Man is comedic drunk, the Gobots are Transformer wannabes and the Defenders are a pathetic superhero team and do menial tasks. The strip often has Robot Chicken-style humor (in fact ToyFare is written by people that worked on Robot Chicken).
My sources are the Wikipedia pages "Twisted Toyfare Theatre" and "ToyFare"