I am actually not opposed to rewards at all, although I have found that rewards that would work with other kids don't necessarily work with mine and vice versa. lol Just regarding reading, though, I try to maintain the reading being the reward itself so that's why I don't like the school incentive programs at school.
And please know that my last comment was a digression, not at all a criticism of what you are doing with your daughter. Also, I totally understand getting into the reward and then not being able to get out of it! Maybe you could change the reward until slowly it is something different. The one thing I absolutely reward my kids' reading with is more books! lol So maybe encourage her to read a certain amount and reward her by letting her choose a new book at the bookstore or something like that?
As for early readers, my kids went through a whole series of "sound" books from the library with titles like (-ot as in pot, -at as in cat). I'm sorry I don't remember the author though (there may have been multiple authors actually). Also there is an older set of books by Margaret Hillert that might be a little too hard right now but were great for that simple, repetitive sentence stage. And they were often actually well illustrated and some were slightly more interesting (retelling of fables and things like that if I remember correctly).
Our public library has a brochure with lists of books at different levels. You might try finding books at the Guided reading level A for her. Check out
www.scholastic.com/bookwizard to search books by level.
