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Repetitiveness great for language learning
It's a short stories book but make it very very short stories. I read the ebook version and each story was less than 10 minutes read, maybe 2 or 3 pages. Being this short is great for understanding the whole context without too much complexity; the stories repeat multiple words (博士 is now ingrained in my brain forever); and they always have a catch at the end, which is good to test your comprehension.
That said, at about one third of the book I was already bored. Most stories are repetitive and the final catch if not obvious is boring. I know it's a children's book and all, but I thought 10分で読めるこわい話 more entertaining, for example.
For the level, I think it's fine if you're already studying for the N3 (I was in the middle of the 2000 単語 N3 book). Also, if you're reading using a device like a tablet or a Kindle, I recommend reading this version without furigana, instead of the version with furigana. This way it's still easy to search unknown words (by selecting) and test yourself with the words you should know the reading of.