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The language dance is what I read about on the very addictive online foreign language program, http://www.byki.com/

byki's learning system is based on vocabulary rather than grammar. And memorizing chunks of conversations. Their research shows that this improves fluency.

Not sure whether the research in literacy of 1st languages is similar to learning a foreign language (at any age). Seems to have a lot of similarities, though. This repetition of parents' conversations to the child would reinforce the language chunks that the children learn. And also would give a context for that knowledge so that the child can create meaningful language.