OP thank you for starting this thread, I'm reading responses closely - my DD has just started Y2 and 12 months ago could have written your thread. I felt the same as you, that it was worse to force the reading and potentially entrench her further against it.
Throughout Y1 she could read well if she was in the mood, but if she wasn't, her ability was much lower. If she wasn't in the mood we had terrible tantrums, and throwing herself around, if this happened (almost daily) I read to her instead. (TBH I really struggle with all this as I am an avid reader, as is DH - we are a book-loving family and have many books in the house! and read several books a day since birth to our DC and really tried to instil this love in our children).
At the end of Y1, she got lower marks (or whatever the stats are called) for reading than writing/maths, and that gave me a bit of a shock, as the teacher felt she should definitely be doing better, but needed more practice, and asked me if we had books at home/read together regularly 
So I decided to change tactics slightly, and now my approach is that practicing reading daily is an obligation, much like eating veg/cleaning teeth. We spent the summer going to the library regularly with DD, letting her choose books she wanted to read from the early reader section (that is where the fabulous Usborne Early Reader series mentioned by previous pp) are found. She responds well to controlling the book choices!
We still get tantrums when I say it's time to read, but much less as it's now a 'non-negotiable' so she gives in pretty easily. I have seen quite a bit of improvement and hope it will continue. I do think I should have adopted this approach a year earlier...
I love the suggestions above and will be using some of the new ideas!