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Interesting! I've been wondering how anyone was going to attempt to do children's books in eformat. In my opinion, none of the ereaders are conducive to this. Children's books are usually graphic heavy, and the lack of color and small screen size of ereaders mean it's not a good substitute.
Using a laptop/desktop would work well for this if you want to read with your child, or let the child read (or be read to) on his/her own. I'm fairly impressed by the video demo on Disney's page. Not sure it's worth $80/year though. I guess that's the equivalent of purchasing a pbook every other month (last time I bought a kid's book it was about $12), but I tend to rely on the local library for that sort of thing.
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