The problem with the "don't actually try to read; instead, guess what the word might be based on things other than the actual letters it's actually composed of"

The problem with the "don't actually try to read; instead, guess what the word might be based on things other than the actual letters it's actually composed of" approach is... it doesn't teach kids to read. It does, however, teach kids to skim and guess and parrot, which, given a bit of coaching and upfront memorisation, is perfectly sufficient for passing a literacy test by rote despite, in fact, being unable to actually read. So we end up with perverse incentives for the school and kids with unfortunate gaps in their life skills.