John Flansburgh of They Might Be Giants shared some interesting picks for children's music with the NY Times [not his own, though they do get a few obligatory plugs]. References run from the Shaggs to Julie Andrews, but this comment at the end about what his friends' kids listen to seems the most insightful. Also, the names don't remind me how little I know these days about kids music:
I know one kid who when he was 4 only liked the Ramones. My friend's 4-year-old daughter constantly requests "the angry song" from Dreamgirls ("And I Am Telling You I'm Not Going"). Another friend's kid is only into music that is robotic, like Daft Punk and Kraftwerk. Kids will all grow up to reveal why their obsessions seem so specific.
Playlist | He Might Be Giant, but He Knows Children's Music [nyt]