What about something like Eloise or Hetty and Harriet? Not chapter-book length, but longer than your average picture book, and still illustrated.
I also love Click Clack Moo: Cows That Type and Giggle Giggle Quack!, which Annabel would probably appreciate much more than Dylan does. (He loves hearing Giggle Giggle Quack because of the animal sounds, but I'm not sure he's actually getting the jokes.)
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Em's a big fan of the
Fancy Nancy
books.
I always loved the Frances books by Russell Hoban. Also, Harry the Dirty Dog (and the other Harry books) by Zion and Graham.
Sara is on a huge Harry the Dirty Dog kick. And Susan, the Frances books might be perfect, because they are a bit longer than your average picture book. Plus, Frances rocks.
Lillian's pretty fond of the Frances books, when she's willing to hear something OTHER than Beatrix Potter. (We normally get bullied into 3-4 Potter books a night.)
Emeline LOVES the
Fancy Nancy
series. She's also really into the Disney movie-books, tho I didn't get those for her.
Oooh! Cynthia Rylant!
The Relative's Came, Dog Heaven, The Old Woman Who Named Things.
Also, look up the illustrator Mary Grandpre. She's best known for the Harry Potter book covers, but the children's books she's illustrated are simply gorgeous.
Pockets, The House of Wisdom, Chin Yu Min and the Ginger Cat.
Truly gorgeous and very engaging.
I'm a fan of the classics:
Curious George, Make Way for Ducklings, Harold and the Purple Crayon, Corduroy, The Story of Ping, Mike Mulligan and His Steam Shovel, Blueberries for Sal, The Mitten, The House on East 88th Street/Lyle, Lyle Crocodile,
or any of the Babar stories (although the translations are horrific).
ETA: I also loved the Frances and Harry the Dirty Dog books.
I'm glad kids still read the Harry the Dirty Dog books - one of my favorites. Is Richard Scarry still good?
CRITTERS!
Em is loving on the Little Critters books right now.
The Harry the Dirty Dog books are available in the bargain section at Barnes & Noble, btw.