He's outlining the journey of going from a pre-reader to reader, from board books to Hop on Pop to Where the Wild Things Are to Corduroy to Eloise to Madeline to Harry the Dirty Dog to Miss Nelson to Sylvester to Arnie, the Donut (it was a walk down literature memory lane.)
After those books, it's chapter book time. Then you discover Frog and Toad. When you're young, you discover the library and realize you own those books.
Now you're a writer. What's most important? Characters: He talks about discovering The Outsiders and how amazed he was at Pony Boy. Setting: The two sides of town in The Outsiders, the two sides of the track. When you read great books you realize that you love them because those books define your humanity to yourself.