I agree that the longer one lives without a computer the better. But I suspect that by the time your daughter is in kindergarten the electronic books (like Kindle) will be more popular/used than paper books. I've seen the newest Kindle...it is "OK", but not exceptional (at least not yet). I'm sure future versions will be better.
I already have a few books that I can't wait to read to Katy (when she gets a bit older).
A few weeks ago I came across this one and bought it...
http://www.amazon.com/I-Love-My-Mommy-Because/dp/0525446257/ref=sr_1_1?ie=UTF8&s=books&qid=1244946360&sr=1-1The end almost choked me up (yes, folks, I do have a non-rough side).