At last count, Extra Yarn by Mac Barnett, illustrated by Jon Klassen (Balzer + Bray, 2012) had received four starred reviews. It's Klassen's second picture book--his first, I Want My Hat Back (Candlewick, 2011), also got a lot of attention and went on to win a well-deserved 2012 Geisel Honor. I'm not so sure about Extra Yarn, although I do love a picture book about knitting. I think Mars is a great name for a dog, too.
But back to the knitting. There's only one illustration in the whole book of Annabelle actually knitting something (it happens to be a sweater for a pickup truck, but that's another issue). And I'm pretty sure that the needles aren't supposed to be pointing up like that.
Does it matter, though? After all, the book is about a box that holds a never-ending supply of yarn of every color: Annabelle can probably knit it however she wants. And knitters as well as critics seem to love the book anyway. Maybe you are supposed to hold the needles that way, at least in picture books! Just don't try it at home.