I think there are a lot of different (potential) issues that get lumped together under a general heading of 'reading'
I was a hyperlexic child. I was reading way above my age from very early on. there were certainly times, when i was small, that my understanding of language/context/life in general did not match up to me reading ability. I could technically decode anything I came across, but comprehending it was another thing entirely.
my dd1 is learning to read via mixed methods. I am aware of the pitfalls of this, but she has a severe language disorder, and is ASD (severe), and we have had to use a variety of methods to get her to where she is. she has a sound basic knowledge of phonics, which we have been working on alongside whole word recognition. the whole word recognition is worked on alongside comprehensive language support to ensure she actually understands/can reference the word once she can read it.
purely in terms of keeping her interest (she is 7, should in year 3, I think - she is at a SN school), we have had to up the stakes in terms of what materials she is given to read. if we had stuck at pure phonics, and trying to build it up from there (she is only just starting to blend, 4 years after she learnt phonics), she would have switched off by now, and relied on her phenomenal memory. we often come up against the fact that once she has read a text, she just knows it - so on the second reading, is she 'reading' it, or reciting it? (iPad apps have been great for tackling this, as we can daily change the text on something like Our Story to ensure she is reading it, not relying on memory of word order/sentence order)
to up these stakes, we had to introduce words as whole word - names, places - the stuff that toddler 'read' when seeing eg a familiar shop name etc. by using these, we can keep her interest and motivation high to learn to read.
she is now at the stage where she is (slowly) beginning to sound out words, and if they are easily blended she can manage. she, sadly, is not sticking to the nice phonic readers we have around the place, but instead is aiming high . but ambition is good, and she would not be trying this if she had been demotivated by not being able to read for the last 4 years.
dd2 is in reception, and is being taught Jolly phonics (which she already knows as has been shadowing dd1 for the last few years!), and bringing home mainly Ginn books. she loves them (and they make a nice change for me, as dd1 was, and is, ORT obsessed) and so is highly motivated to read them. because we have a houseful of labelled, laminated cards stuck up everywhere, she already can recognise some whole words - they were not 'taught' to her, but eg we have a visual timetable up for dd1 with the days of the week on, and dd2 can 'read' those now (and has done for ages). same with names (via the visual timetable), and activities (ditto).
we are a house of flashcards, as we used them to teach vocab to dd1 (not reading vocab, just general support for understanding what a word means - we really have had to teach her every single aspect of language overtly), and so both girls sit and play (their choice, not mine!) snap using the flashcards. lots of whole word recognition support going on there. and dd2 will try to sound out some of them too (sometimes succeeds, sometimes doesn't)
just because of how we have to help to support dd1, I am of the mixed methods school of thought. but then, I have had to try many different things not all of them conventional, to get dd1 to the point she is at. in my world, anything goes as long as it is approached properly, with structure, an idea of where you are going, and what you are going to do when yo get there.