Hi SlinkyPebbles:
I agree with some who have suggested that in YR 'proper' levelled reading books often don't come home until after Christmas. Many schools use this first term to settle children into school (remembering there are all sorts of backgrounds/ abilities) and to start getting them to learn how to behave in small reading groups and introducing them to concepts about books: authors, illustrators, characters, etc.... During this period the teachers are carefully working out where each child is at in terms of their ability to read and starting to organise reading groups by ability level (whether this is openly explained to you or not it's unlikely that reading will be taught as a whole class, although some literacy activities will be for whole class).
At this stage, the teacher's strategy may be to give everyone in the class the same book (or type of book) thereby not making any child (and by extension) parents feel they're not doing well. Sometimes parents can be more keen to start learning to read than the school - but please remember that elsewhere in the world children don't formally start school until the year they turn 7 - so England is very unusual in starting so early and as far as the world league tables go it doesn't look like it results in any substantial educational advantage long term. Picture books are used to teach children to 'read' clues about the story in the illustration - this is a very useful tool with early reading - and it may be that your school has found this approach to work well for the benefit of the majority of pupils.
As someone who had a child seriously struggle to learn to read (DD1 now Y5 and doing very well - reading books appropriate for her age) please spare a little thought for the children and parents of struggling readers - It's very hard to hear your 4 year old say they're the worst reader in class, everyone can sound out words but me. But it isn't a race or a competition - it's also not just about learning to read out words. It really is about appreciating meaning and beyond that 'getting' the subtext of stories or clues about where the story is heading. So this is an on-going thing that can take a few years.
In the meantime, as numbum suggested - try reading your own things as well.
Link to Oxford Owl here: www.oxfordowl.co.uk/Reading/
Oxford Owl also has very useful information on how to support learning to read here www.oxfordowl.co.uk/GetReading.
Join a library.
Start exchanging books with friends with children of similar age.
Check out charity shops children's book sections.
Many schools allow children to take books from their class library or the school library - find out if your daughter will be doing this as well in Class R.
HTH