Read a bit behind?

I asked on a recent poll on WTM what your AVERAGE 1st/2nd grader can read and MOST said Chapter books! CHAPTER BOOKS?! Jeez. Im missing something major here. :(

Candice can read things like the "Learn To Read" stories on Starfall. Seen Here She has a bit of trouble with some words- The, Says. She can read it all on her own though.

I guess thats good, i mean that is progress but I cant help but feel like shes severely behind?