In addition to reading lots of shorter books, we also always have one or two readalouds going, despite the many challenges of reading aloud for extended periods when there's a 2-year-old who's new to reading aloud! Right now it's:
Everyday Graces by Karen Santorum
This book is an anthology of excerpts from classical literature that illustrate various good qualities we wish to see in our children. What I love about this book is children learn about good behaviors through observing characters in a story rather than through explicit instruction, much like they learn about good behaviors through observing their parents. So far, the stories used are wonderful. We're still on "Honoring Your Father and Mother" (the first section). It's really nicely done. It matches really, really well with the Jewish study of middos (character traits) which is a central part of Jewish education.
Ereth's Birthday, by Avi
We love all the books from the series about Dimwood Forest and Poppy and Rye, the mice, and their friends. Ereth is a delightfully grumpy hedgehog who thinks everyone has forgotten his birthday. He's a little more colorful than Eeyore. :) I think this is the most exquisitely written set of books Avi has done. We also really like The End of the Beginning.
We usually read aloud for 30 minutes before lights out. It's a really nice tradition, and part of our homeschooling routine. But then, everything is part of our homeschooling routine. Life is rich, full of things to learn, and every moment is an opportunity.