ds is dyslexic (runs very strongly in my family). The school at that point was trying to teach reading using mixed methods. ds was very confused and convinced he couldn't do it. Trying to do reading at home often resulted in him getting very very upset. More homework of the sort he was getting at that time would have been totally counterproductive, I wouldn't have done it, and would have fought with the school if they had tried to enforce it. What he needed was a different approach. Once I had him diagnosed (outside of school) and got some brilliant advice (from maverick on Mumsnet) I got him a specialist tutor in phonics. He had six or seven sessions during one summer holiday and it just made a huge difference. I learned how to read with him, and he learned that reading had rules he could understand. So I was quite grateful that school didn't appear to care that we never read the books he brought home.
However once he got over that hurdle, the much stricter reading requirement at the American school (but with free choice of skill appropriate books, including graphic novels) really supported him to get much more confident and start reading for pleasure.
Dillydreamer, practice only makes perfect if you have an understanding of what you are practicing. If it's all double dutch to you then no matter how much you do of it, it doesn't make any more sense. Children who are struggling often need a different approach to those that sail through. Oh, and ds had no problem at all with anything at school that didn't involve reading or writing, which when little means a fair amount.
I don't know that you are right about starting everything early being for the best. There are plenty of countries that start formal education a great deal later than we do, and get better results a few years down the line. For example Canadian formal school starts at six, and I think this is true of much of Scandinavia too.