I have also seem the commercial.
I think the your baby can read system teaches babies to memorize common words by watching a set of DVD's. Sounds expensive and boring to me!
I don't see how it could harm your child, but I also don't think that the TV is the best learning tool for babies. Babies require a lot of physical interaction, that you just can't get from a TV.
I think that emotional developement is more important, especially during the first few years of life.
And besides TV has enough power over our children already.