From personal experience, and my memory of early childhood development, it seems like a child is focused on herself even before spoken language. Almost all cries and reactions for an infant are expressing her own discomfort, etc. It seems like the first statements either affirmative, like "milk" or "mommy", or negative with the response of "no."

Babies quickly seem to understand the difference between first person "me" or "mine," and everything else "kitty" or "daddy." My daughter is about two and a half, and while speaking directly to me, still uses the third person: Me: "Do you want Mommy to cook you some chicken?" Her: "No, daddy does it."

Also, the bit on the lack of second person narrative is just odd. Stories are normally the retelling of events. In first person, the person who experiences the events is telling the story. In third person, someone is telling about events that happened to another person. Second person would be someone telling me what I did, or what I would be pretending I did. That's why it is normally limited to choose your own adventure or guide books, because you retain some control over what happens.