Sounds like a fun time in the original post.

There's certainly no "problem" here per se, but it does sound like one of those situations where you know the kid is ready, but maybe the kid isn't convinced of this, and just needs a little motivation to try to prove it to herself, have that aha! moment, and move on to bigger and better things.

DD6 did the same thing with regards to reading aloud, and I've posted about it elsewhere. What worked in her case was an appeal to her pride. I told her about how far ahead of me in all things she was from me at that age... except... I had been reading to my mom by that age. Less than a week later, she sat down with her mom and read her a book.

Once she hit that milestone, she felt comfortable entertaining herself with books on her own, but she still gets to snuggle up to mom and read stories, sometimes taking turns with different books. And of course, bedtime is still story time with dad.