When to read which Bible stories

Every night we read to Elisabeth from the Big Picture Story Bible. Like most Bible story books, it tells some of the graphic stories of the Bible, while not including all the details. The account of David and Goliath, for instance, is included in every picture Bible I've seen. It is dramatic and violent, and it is a very significant event in the history of Israel - and so it is included.

My questions here (especially for those with older children) are:

1. When do you include the violent stories of the Bible in family Bible-reading?
2. How do you do it?

I think that there are two gut instincts that pull in opposite directions. Both are partially valid, and I think that the tension between the two is precisely what I'm asking how to navigate.

1. To leave things out is wrong because we become the editors of the Bible. If this is true, then every children's Bible has made this error, because they are all selective in their presentation. Beyond that, any parent who reads to their children will read selectively and deliberately in order to impress the big picture. The question then is not if we are selective, but how and when.
2. To expose children to the violence of the Bible at too young an age is wrong and damaging. If this is true, then we ought not to tell our children about the crucifixion of Jesus until they meet our criteria of appropriate 'maturity.' Yet the message of the Gospel is that the only way to safety, healing and peace with God is through the violent death of His Son. Will we then withhold the Good News until we think they can handle violence?

What I'm asking for is wisdom. What have you learned (or observed in others) about being faithful, sensitive and rightly selective at the various stages of child development - without swinging to either of the poles I've identified?