I have some more suggestions.

We have slowly transitioned to reading much longer books. We have been enjoying E.B. White (Charlotte's Web went over better than Stuart Little, the latter got kind of weird in the end,) George Seldon (A Cricket in Time's Square, Harry Kitten and Tucker Mouse, Harry Cat's Pet Puppy) Roald Dahl (The Enormous Crocodile), Emily Jenkins (Toys Go Out).

We have really been impressed with her comprehension of these longer chapter books with very little pictures read over the course of a few nights. She has a knack for remembering small details, although some more mature themes go over her head. But, she can relay the plot really well. And, she enjoys them. So, although we still enjoy our favorite picture books, I am now on the lookout for longish read-alouds with rich vocabulary that a three-year-old can relate to. Like MegMeg said, we want books that are not easy readers. So, I'm bumping this thread for more leads.

We are going to order the My Father's Dragon series as well as more books from the authors above. probably for Christmas.

She also still loves Shel Silverstein poems. They are right up her weird alley, and she has been memorizing so many.