I just heard about a study by a psych out of Berkeley on NPR today. She talked about babies and young kids being "lanterns" of learning. They see everything but don't focus well. OTOH, adults are spotlights: better able to focus, but that means excluding a lot from notice. She suggested that instead of saying that kids aren't good at paying attention, we should say they can't NOT pay attention! That made a lot of sense to me.
I've heard something similar but I love the way that was phrased!
On the actual Your Baby Can Read -I've seen it but don't really know enough about it to form any kind of opinion. I have a four year old watching the History Channel right now so I probably should keep my mouth shut either way.