I just got this, and I am going to hold off giving it to my just-turned-three-yr-old. I think she will be able to appreciate it much more when she's closer to 4.
The story is lovely and very creative. The character wants to be unique and show her class how special her bunny is, and is quite upset when she sees that a classmate has the same bunny (but there is a slight difference between the bunnies and when they accidentally get mixed up, the girls realize this at 2 a.m. and their fathers are forced to go out into the night and exchange the bunnies). The surprise ending is the two girls become fast friends. I think some of the language might go over my 3 yr-old's head (e.g., one girl pronounces it "k-nuffle" and the other "nuffle"). The illustrations are created using a mixture of black-and-white photography and colored drawings, which is a nice change from some of the more traditional toddler books out there... but still, maybe better for a 4 year old.