Quote: "I know that both from my own daughter"
maybe your daughter is just evil
I don't think it's a matter of children being born not knowing right from wrong (good and bad, etc), but just that to them the cost benefit equation works to their favour (i.e. they are not really punished to any significant degree for doing bad acts) and they get away with not being good - they get a thrill out of the response.
Quote: "empathy for creatures bigger that insect and better be fluffy. Would you feel anything about dead fish or chicken"
that's because these days, most kids don't even know where their food comes from, and if they do then they don't really care (but still know to some extent that it's wrong), but their own needs/wants are more important in comparison.
Quote: "All living things value reproduction over death"
Quote: "Their goal is reproduction, not survival"
this is just a matter of semantics; i.e. why reproduce at all if not to propagate life to the next generation?
i.e. reproduction is the means to new life.
A interesting side note: I remember something that I heard in a documentary sometime ago which has stuck in my memory; I don't know how true it actually is, but the gist of it was that humans are the only species that apparently control when they perform the act of reproduction (for pleasures sake), all other species supposedly only do it when the time is right (ie. they are in heat or it's the right season)...