I was primary TA / helper for over twenty years. During that time, methods of teaching reading changed, with today's method of Phonics proving more reliable than the older 'look and say' method. Phonics helps children UNDERSTAND how sounds build into words, which in turn helps with spelling.
As maizieD suggested, words like 'laugh' probably wouldn't be in a 'decodable' book, but many schools still use the thirty year old 'Biff & Chip' books. The latest generation of books have been improved, and ARE decodable.
The important thing is that she continues to enjoy reading, and is not worried by strategies and methods. A few children do continue 'sounding' for longer than they need to, either because they have got so used to doing it, and feel 'safe', or they just think it is 'expected' of them. Maybe gently 'wean' her off it gradually.
You and she might find this book clarifies things for you:
An inexpensive and easy to use book, that can encourage children with reading, spelling and writing is mentioned in the MN Book Reviews section. In “Children’s educational books and courses”, the Oxford Phonics Spelling Dictionary presents words by their initial SOUND, unlike a ‘normal’ dictionary, which is always in alphabetical order. Thus, in the ‘S’ section are words like ‘cinema’ and ‘cycle’, which have a ‘S’ sound, even though they are spelt with ‘C’.
The Dictionary is colourful and amusingly illustrated, and can be used by children on their own, or with adult support, from Reception age right up to the start of secondary school.
The review has a link to view sample pages, and purchase if you so wish.