the point of reading with infants and young children isn't necessarily the book itself. the act of reading to a baby creates a soothing, comforting, and loving environment. it helps parents develop routines, and is usually very calming for parents too. reading can create and strengthen bonds between adults and infants. it's also a quiet moment without tons of stimulus, noise, lights, etc. it's a moment to just be and to relate to the child.
ultimately, with newborns, you can read whatever you want. when i worked with infants i'd often read to them from my university text books in a soothing tone. it helped me keep the info in my brain and the baby heard tons of odd words. really, the tone of it is what calmed them. i could talk about post-modern hegemony in a soothing voice and they'd fall asleep.
as for 2 year olds, they do have short attention spans. but there are tons of great books out there written for them. eric carle - whether you like him or not - incorporated short sentences, great visuals, and words that were in a child's every day life to capture their attention. basically, you should find books that match your child's stage of development, attention span, and interests.
while americans are becoming more pushy on the whole child genius thing (baby einstein i'm looking at you), i don't think that daily reading is a form of academic stress on a child. if anything, it makes reading fun, enjoyable, and part of the daily routine. it sets children up to want to learn. lap time and stories should not be about rote memorization or drilling letters into a child. it should be a time to relax, unwind, and encourage children to enjoy books.
that said, if the adult reading hates a book, that attitude will trickle down to the child. so find something you enjoy reading, whether it's an article from the newspaper, a book of poems, or the side of a cereal box. the value to reading with your child is the act, not necessarily the object you are reading. at a certain age they do express their personal preferences which should be respected. so slide in some other options that you might like and ween them off of the stuff you despise.
literacy and books are not about trying to be "male, middle-class, and white" (thanks Ben Folds) but about helping children develop the skills to learn about the world and become more curious about it. there are multiple ways to read and engage children with literacy through music, dramatic play, art, and other forms of culturally specific activities. really, there is no one way to learn to love literacy. however children get excited about reading is what's important, not the tools they use to get there. besides, does being poor mean children shouldn't be exposed to books, words, and literacy?