My son is an avid reader and at 8, reads at a late high school level. When he was reading at 4, the bigger problem was not that he couldn't read the story and understand but that the font was simply too small for him to track well. Many picture books are actually written at a higher level because the authors assume adults will be reading the story. If you want to try her out on a higher level book, you can get a magnifying ruler for her, see if your library has large print books or get her an ereader where you can enlarge the font size.
As for loving people reading to her, my son still likes me to read to him every night. It's a little odd that I'll read aloud SkippyJon Jones all snuggled up in bed and when we're done, he'll pick up his own giant book and read. But it's part of our routine and it's perfect!
He also listens to audiobooks often in the car. You can try her on some higher level audiobooks too. My son's first favorite was Charlie and the Chocolate Factory because he could close his eyes and imagine everything.
This is all so wonderful. Great Job!!
