I'll echo progressive phonics! The stories are really cute, DD (similar age to yours) loves them. I really like how they're cooperative -- the kid reads the words using the concept being learned (written in big red letters) while the parent reads the rest of the words. So they get more complex stories than just "see dog sit". Plus they're also observing the more complex words being read, absorbing some stuff along the way I'm sure.
We're already up to the intermediate series!
There is a writing companion book it recommends downloading, but we haven't. I think it works just fine without the flashcards and worksheets.
I never got into starfall. Everyone keeps recommending it. I, personally, find it hokey and cheap and hard to navigate, and not a smooth progression of skills either. I also doubt that a kid just starting to read wants to worry about the label of the "short A sound" right from the beginning. It's clunky and over complicates things.
I actually just got 100 easy lessons from the library and I'm quite impressed by it. Despite his admonitions not to skip, though, I decided to skip the first 10 lesson -- well, not 'skip' but 'skim'. There's no point in tons of repetition of skills she already has, so I just made sure we covered the different types of activities so she understands how it all works. Even up to about lesson 20 it's nothing she doesn't already know so I'm also skimming a bit -- the orthography is something she has to get used to, after all. And she really, really likes the 'echo what I say slow... now say it fast" activities. We also skip the writing activities. She IS starting to learn to write, but isn't as far as she is with the reading.
But if the kid doesn't enjoy it -- then use something else.