I've argued the toss on this one before.
Lockets, my dd would have hated it too, for different reasons - she was always very secure with phonics, and EVEN THOUGH she was told 20 of the words were nonsense words, she would have clammed up and refused to say them. Even though she would be thinking the correct answer. That's just what she's like. At age 8 she is much better, but still occasionally goes into shut down mode, because she is a perfectionist.
Ds1 would have found it tough too, because he didn't click with phonics till later on, Y2 or later, though he was reading very very well - he is very like me, I learnt entirely through Look and Say (which is how it was taught at the time), and that suited my mind. Ds1 is so similar, he finds spatial things tricky, just like I do, but visual things are easy for him if that makes sense, no idea if that impacts on how easy/difficult you find phonics, but certainly he found blending ridiculously difficult, despite being an excellent reader.
Ds2 will find it fine, he is very logical and finds phonics easy.
I know phonics is very much the current thinking, and in many ways I'm really impressed with it, I am still a little dubious that every word can be phonically decoded, because there are still words that need to be 'learned' (eg one and two).