I was an early reader (age 3), and was also reading quite well by Kindy. Actually, I was bored silly there, and felt they were "talking down" to me a lot. I had been used to spending time with grown-ups who liked to show me things and teach me things and have conversations with me. A whole room full of kids and a grownup who didn't have time for me wasn't my cup of tea...and nothing to challenge my mind except rules I didn't understand. Thankfully, my mom pulled me out for that year. But, I digress...
The next year I went to first grade, and honestly, really struggled with phonics. I still have trouble. I mean, I understand the mechanics now, but it's hard for me to teach it to my dd (who is a very literal learner and NEEDS to know how each word works). It's exhausting and quite trying. I, too, just seemed to absorb what I needed to know to figure out an unknown word without have to resort to "sounding it out." I don't know how; my brain just did.
I think I had such a hard time with phonics for two reasons. Firstly, my vocab was huge and I wasn't sure what the picture was. Was a it a pail? Or a pot? Those black and white pictures are hard to figure out and you get the answer wrong if you put in the wrong letter. Humph. That made me mad, by the way. My answer was right for what I thought it was! And, secondly, I just wasn't always sure how to sound things out. I didn't need to do it and the letters sounded funny to me. Like "am". Nice starter word, but the "a" doesn't exactly sound long or short. "sam" "bam" "dam"....those words I could read, but when you sound it out... See what I mean?
I did do "harder" math, and I read third grade readers (easily), but the phonics really threw me. And it was very discouraging to me.
And a random thought. I think when a child can already read well, it can be harmful to start pounding phonics. I am a fast reader (about 1000 words a minute), and I've never taken any speed reading courses. My dh is still an auditory reader and reads about 300 words a minute. I think (totally my own theory here) that it was a result of having to decode each word that makes him say each word (now in his head), hear it, and then process it. I skip the saying it part, and therefore, can read much faster.
So, those are my random thoughts about MY experiences with BEING an early reader and "dealing" with phonics, FWIW.