I think the answer to this lies in doing not nearly as much in terms of quantity as you're probably thinking in each of those genres. Your kids are roughly the same age as mine (except I have no babies/toddlers) and we're planning to do AO Y1 next year. It schedules the poetry, Burgess, shakespeare, good lit (which in Y1 *is* fables and fairy tales), etc, but if you go look at the Y1 schedule, you're reading maybe one Burgess story a week, three abridged Shakespeare stories a year, one poem a day, etc. So you're covering it all, but not covering all of any one thing, if that makes sense. I think that with 2 short morning read aloud sessions, we'll still have plenty of time for our fun kids' books like Mr Popper's Penguins (on my list for next year!) in the afternoon, which I also value! We'll see, though. It'll be an experiment for us!