Kacee,
Your daughter sounds like my DD as well. The kids like to chose picture book because they can visualize it even though they are capable readers.
Show her a movie (adapted from the book) and tell her that the book is better. If she likes the movie, she will try the book and she will start using her imagination. My DD liked to listen to magic treehouse audiotapes when she was 3-4 and she started reading those by 5. She did not try bigger book until she watched Percy Jackson movie and she finished all Rick Riordan's books and Harry Potter series before 7. Now she tells people that the books are better than movies because you can make anything in your imagination.
