While Little Lady is no where near identifying letters, letter sounds, or of course, reading, I think playing with our letter bin still qualifies as a literary experience. With a set of foam letters (and numbers) intended for the bathtub and a set of plastic cookie cutter letters plus a few small books, we have ourselves a little literary bin. I would love to find a few more baby-safe sets of letters to add to our collection.
She mostly chews on the letters, or knocks down the stacks of letters I make for her, or tries to put the mini books in her mouth. However, as she's doing these things I say things like, "Mmmm... does that letter G taste good?" or "Aw, only the letter T and the letter I are left in the pile after it got knocked down". I guess I believe in repetition and the fact that seeing the letters and hearing the terms for them will do some good in the long run. If not, well, she has fun and I narrate crazier things throughout the day, anyway!
Mini Me also enjoys our letter bin. We sometimes work together to sound out short words or do sets of word families (pig, jig, dig, etc...). Sometimes he just wants to try and hook all the foam letters together.
We also have this fun game that helps practice with lower case letters and building words, but only for Mini Me - I can see those letters getting a real chewin' from Little Lady.
Occasionally we experience a moment of academia with our letter bin, though most of the time it's: letters, letters everywhere but not a word in sight!