I can't answer your question, but it makes me think of another piggyback question. I have heard that the phonics that they teach in many schools sometimes confuse the GT kids who were reading before kindergarten, because they learned how to read differently. I'm thinking that the kids who "teach themselves to read" do something more akin to memorizing words.
Anyone else heard that phonics messes with the early readers?
And Ann -I would say that if your child "reads" something new and out of context, then yes, that's a form of reading. It always surprised me when my child, who was with me pretty much 24/7, would read a word that I knew wasn't in any of the books we had read. Who knows how they do it, but they do it!