Not a teacher, would previously have stayed well clear of this kind of debate. However we are now in a different country (English speaking, first world) and I am wholeheartedly grateful that our kids learnt to read before we came.
System here is look and say with some very basic phonics (single letter sounds essentially, the teacher's response to anything beyond that is blank). Some kids are reading fine. Some of those have a lot of parental support. A few kids in DC2's class are functionally illiterate, age 8. At least some of them also have a lot of parental support, I don't know the parents of all.
I go in to help with literacy session on a regular basis. They simply do not have a toolset to work out what they're reading. They guess based on the first letter and it's hopelessly inaccurate 99/100 times. They try again. By the fifth guess, they've forgotten anything about the sentence anyway. What are they learning? That they can't read. And most other people can. And that the first half hour of every day makes them feel stupid (independent reading time).
My heart breaks for them, it's desperate watching them internalise that lesson. Worse, I suspect learning difficulties for at least 1 of the ones I regularly read with but the school can't tell the difference between failure to concentrate, late bloomer or specific learning obstacle like dyslexia. Thankfully his parents are supportive, have a private tutor engaged and are seeking specialist assessment - guess what the tutor teaches: phonics. Guess where he's beginning to see progress. But yes, he's back at CVC words and the first digraphs which means that in school he still feels stupid and those beliefs are already harder to shake.
I wasn't taught phonics, I was one of the lucky ones who pretty much learnt to read independently before school and it just clicked. But I'm trying to make sure the DC (good readers for their age) still develop their phonics knowledge through spelling etc - it's interesting seeing how they forget to apply it when their teachers aren't using it and start asking me how to spell words that they can work out with a bit of thought.
Before coming here, I would have thought this was a topic for the experts to squabble over and the rest of us to shrug and assume that some kind of middle ground was probably fine everywhere. I'm now convinced that some kids will be fine with anything, but phonics are helpful in putting structure to what they've effectively worked out themselves. For other kids, phonics really is vital in giving them the tools to access written words for themselves. It might still be harder work for them and we will want to think creatively about how to keep them interested in reading of all kinds, stories and literature. But we let them down in their general education and their deep beliefs about themselves if we don't give them an effective toolset.