its wonderful that you are so involved and concerned with doing whats best for your child. in this case, the "idea" of the program may be wonderful, but i do agree with others that memorization of CAT spelling "cat" is not the same as reading. at her age, she is learning each and every day. she is absorbing all her surroundings, sounds, tastes, textures, smells. there is so much her little brain is trying to learn and make sense of. focus on the basics we do know like reading at least 20 mins a day. lots of eye contact and full attention. there is NOTHING that can replace human interaction. focus on showing her things in her home and outside. pick up a ball and say what it is. let her hold it and see it. teach her songs. sing.
dont forget, she will be crawling, walking, talking, running, and climbing in the next few months. there is just so much that will happen naturally, you might not realize each thing is actually something she learned, and her brain is taking it all in.
as far as harm, always remember television is not recommended for children under 2. this goes for elmo, baby einstein, ect. babies have no comprehension of what they see on the screen. it doesnt matter what it is, its just a bunch of objects flashing from one scene to another. one minute the word is there, then next its not. they just dont process things on the screen like adults do. television is television at this age, no matter what you watch. another aspect to realize is the importance of television that is being taught. it teaches a baby to look at the tv, that television watching is good(again, they doesnt understand the difference between MTV, commercials, and learning to read DVDs). babies see that mommy and daddy like the television. you need to decide if that is the overall message you want to send regarding television watching.
and remember, with a program to follow or without, she would love to read any book with her parents and would love any silly song. anything you do will help her learn, without the tv aspect, so that laughing you see, it will be there no matter what you are reading.
and i do agree with the others about children being pushed to do things younger and younger. i never listened to country music in my life until after i had my children. there are many references to how quickly time goes by with children "it wont be like this long" by darius rucker or "your gonna miss this" by trace atkins. some parents(im not saying you) are always wanting their child to complete the next challenge, to finish the next developmental milestone, they miss right now and make their child miss it as well. good luck.