what is critical literacy?

Critical Literacy -- a critical literacy primer, prepared by UNC Heather Coffey. Presents basic definitions, history, action, and classroom application
Critical literacy vs critical thinking & critical reading -- similar goals but different movements

drama and play as vehicles for critical literacy?

Play Stories Build Life stories - Lego-sponsored video illustrating power of play for imagining new approaches and stories for life.
Hacking Picture Books - blog post that explores students' experiences literally cutting and pasting picture books into new narratives.

related resources:

Many books by Vivian Vasquez. See especially Negotiating Critical Literacies with Children
Hacking Picture Books - rewriting narratives through reorganizing picture books' images and words: a literal "cut and paste."
Lewison, Leland, & Harste (2008), Creating Critical Classrooms (chapter 1)
Critical Inquiry and Multiliteracies in the 1st Grade - Language Arts (2007) article about unit using story Grandma Ruth
Cope. B. & Kalantzis, M. Eds. (2000). Multiliteracies Literacy Learning and the Desig of Social Futures ---
Linda Christensen Teaching Joy and Justice: Re-imagining the Language Arts Classroom NWP write up
Becoming (Other)wise: Enhancing Critical Reading Perspectives (200o) -- Ruth Vinz et. al
Critical Literacy: Enhancing Students' Comprehension of Texts (2004) -- McLaughlin & Devoogd
Theory To Practice Journal: Special Issue on Critical Literacy (2012) 51(1) --

Key examples:

No Bad News (2001) - written by Dr. Kenneth Cole. Photos taken in Milwaukee by John Ruebartsch