Children are very perceptive and easily create models of the story layer by layer. I read some stories to my 2 year old nephew, he understands parts of it and express them in certein contexts, like wolf howl or alibabas :sim Sim, etc.
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That's right. Children are creative and resourceful. The more we underestimate and overprotect them, the less they develop their potentials.
In Venezuela the current "philosophy of education" favors an extremely lenient approach to teaching and learning with an alleged emphasis on the students, but their student-centered approach is nothing but a populist take on creating a population as ignorant as possible; a functional illiterate mass that can't read or understand words and can't read or understand the world either.