I'm no expert, but I believe the sight words and the phonics are simply two different skills to create proficient readers.
This site says:
"Many of the 220 words in the Dolch list, can not be "sounded out", and hence must be learned by sight. Hence the list is often referred to as "Dolch Sight Word List", and the words on it, as "Dolch Sight Words"."
http://www.dolchsightwords.org/Many of the Dolch Sight words can be sounded out phonetically (many people don't realize this), these just happen to be the most common words in early readers so the public schools teach them by memorization rather than by the phonetics. Many PS don't teach most phonics and use memorization rather than phonics rules, although the trend is changing again.
We are finishing up remediating my oldest DD who learned to spell in PS, for this child not understanding phonics began to impact her spelling in around 5th grade. I now teach a full phonics program with all my other DC as part of their spelling.
Phonics is learning all the different sounds and rules of the different phonograms that make up words. Sight words are just that, words that are memorized.
