Steve, let's definitely chat. I definitely agree that that current content on the ipad is very generic- although it definitely is still addictive! We have no ipads in our household, but my sons get to use them at their grandparents. I love your solution to customise with the childs family. I really like using your own family photos to give that personalised experience.
Does your app allow real time reading of stories as well as pre-recorded? One aspect of this challenge and solution that I am focussed on it using technology for 'real' communication as opposed to pre-recorded. I know it is harder, but I feel that live feedback (eg; child comments on aspect of story and/or adult can ask question) is the key to not only improving literacy but creating emotional connections for children without which they cannot thrive in anything. Let me know your thoughts.