I was recently in Washington D.C. for the American Library Association's Annual Conference. One program about Early Readers used Adobe's After Effects software to share a picture book with a large crowd. It was way cool because the animation made it look like a real book: you could see the pages turning and the die-cuts falling into place. The experience made me wonder how electronic readers are handling picture books, so I did a little googling and here are some interesting article/sites to check out:
The Digital Revolution in Children's Publishing (PW article)
The iPad Meets the Children's Book (PW article)
readeo (website for sharing books over the internet)
Tumblebooks (one of the children's e-book products we offer at the library)
iStoryTime (a place to buy kids' books for Apple products)
Dr. Seuss apps from Oceanhouse Media (another example of the above)