I think this book should definitely be read but I understand that it is really tough. A good way to get around this is to have it read aloud. This means that you do not have the strain of reading the tough words (although whoevers reading will) and it gives your brain time to let things sink in.
Arabian Nights has an on going story through out but that one thread can be easy to loose as sometimes there is a story in a story in which there is another story and this can make things very confusing and sometimes you can forget what story you are in.
The Arabian Nights is amazing for learning about ancient civilisations and superstitions. The books included jinni's, princesses, Persians, sailors, thieves and unfaithful friends. Each story is different and tells you about another character so it is an easy book to pick up whenever.
This book is very anti- Christian for example they believe all Christians are cruel and that each of them should be struck down by Allah.
Some fascinating stories are found in the Arabian nights that are often referenced to in other books. You will know many of the stories as they are very famous. Some have morals, some love and often death or tragic partings which are all interwoven into the fascinating tales of The Arabian Nights.
Because of its difficulty Arabian Nights might be better read in chunks, don't be fooled this book is nothing like Disney's tales of Aladdin.
(Just a note of warning Sir Richard F. Burtons translation of Arabian Nights is more adult in nature and includes some tough vocabulary so as a read aloud or for a younger child it might be better to use Edmund Dulacs illustrated translation instead).