Introducing the World to Children

What better way to introduce the world to children than through books! While many of us know the importance of cultivating the passion for reading in children, many will wonder - how should I go about doing this?
Myself for one, loves reading. How did I cultivate the passion to read? The earliest memory has been primary one textbooks which introduced words like "Hand" (followed by picture of a hand; eyes (followed by picture of a big blue eye); early memories of lying on the bed reading Enid Blyton's books of pixies, goblins and fairies; thereafter the journey with books begin as I progress to teenage fiction; business, self help, diets, parenting and the list goes on...

As we plan for our kids, naturally various questions pop up in our minds :
1) Should I start with basic key words books for my child?
2) Should I start by reading various types of storybooks?
3) Is Phonics important? (I don't remember structurally learning phonics when young but is still able to read widely)
4) Should I start with Phonics?
5) Should I read and point to words? learn by sight?
6) Should I allow him/her to learn on his own pace? (Just like myself when young?)

There is really no right or wrong answers (whats new! authors love saying this to avoid unwelcome comments!)

WHAT DID I DO FOR A START?
1) Early Reading (Story Telling)
by this I mean reading to the kids. In another word - Story Telling. I had chosen books which are simple and interesting to read. Feel and Touch books are able to captivate some children's interest. Whats most important in story telling is parent's ability to make characters in these books come alive! Try to mimic the voices of characters eg : the BIG BAD WOLF (emphasize and slow down when reading these words). The BIG BAD WOLF says "Little Pig Little Pig can I come in?". This can be done in a low deep voice . Children are curious by nature. Which child can resist the "BIG BAD WOLF" who sounds sooo reeeeaaaaal?

2) Rhymes
reading rhymes to children is another way to cultivate their interests for books. Rhymes are easy for children to follow with their rhythmic tunes. My son was 1st engaged in "Thomas the Train" rhythmic touch and feel book at a tender age of 6months. It goes "Thomas loves to drive through the countryside. He toots at the cows as he passes by. Harold loves to fly high up in the sky. He loves to see the birds go flying by." Soonest he hear this rhyme, he hymns along.