It should be a relief to know that Picture Books are alive and well!
I know this article is about 2 years old, but I found it while doing some research on the picture book market. Another, more recent, but still refreshing taking on the state of children's publishing can be found here. It is always encouraging to see other authors succeeding in the field. In this environment of closing imprints and freezing backlists (see the Boston Globe or Nathan Bransford's more recent update), I am bolstered to read of children's books that are being sold.
Storytime is crucial to young children's early literacy skills. I am currently reading an excellent reference book on the topic: "Much More Than the ABCs: The Early Stages of Reading and Writing" by Judith Schickedanz.
Let me know what you think.