My son was reading level 1-2 books by three. He's 6 now and reads at a 4th grade level. He did not learn how to read by sounding out words. Once he knew the "rules" of reading, he would just look at a word and say it. This isn't saying that he didn't make mistakes, he just would rather try and say the whole word than slow down and sound out each part. For example, explaining that a word ending in an e makes the vowel "say itself" is a general rule.
Hi jhajer - i pulled your comment from another thread to say welcome to the board! Your DS6 sounds a lot like my DS5 with the reading. I sometimes think he just quickly looks at the string of letters in unfamiliar words and blurts out the closest word that he already knows that has those same letters (instead of sounding out). My DS5 is starting to sound out words more now, after my mom created a game with him using fridge letters. They make the most nonsensical words, then DS5 says what the word is and what made-up planet that word is from.
How is your DS6's school situation? Is he happy? Many people find this board when they have questions or concerns, and i just want to give you a chance to ask all your questions. There are many here who have probably had similar experiences. No need to post more if you don't feel like it, i just didn't want your other post to get lost!