Not negating what you wrote, but I think the parent comment was referring more to reading "to" children being a good thing in an of itself. I believe there are a number of theorised factors: encouraging an interest in books before the child is actually able to read them (and so being an encouragement to learn), giving them exposure to stories and ideas and pumping their imagination, and providing a focus for quality parent/child time especially as part of a daily routine.

My 4y/o is learning to read at the moment, and the difference between the early reader phonics books he gets from school and the stuff I read to him at home at the moment is night and day in terms of story and interest. There's a real market for some really good authors to produce better phonics books.