I mean, I guess a good of framing this is yeah, it is "the education institution's side of this argument". I see it as informed by decades of shifting research on how to teach reading and attentive to the tension between "we need regulations to guard against bad teachers" and "we need to give teachers the freedom to apply their expertise". Most of the rest of your argument is just not realizing that those are the actual names of things (e.g. there's actually a thing called "the simple view of literacy").

And to zoom out a little, a big part of educational quality is "do good people want to teach". A heavily prescribed curriculum is one more barrier to retaining good, motivated teachers. I'm not saying phonics shouldn't be taught, and I'm not saying teachers should have the freedom to not teach it. I am saying that all the teachers I know have kids where phonics didn't work (either the kid wasn't getting it, or the kid already knew it and drilling it into them killed their passion for reading, but hey standardized testing), and that's the kind of thing that makes good people quit: you know something is counterproductive, but your boss/the man makes you do it anyway, and in this case you fail a kid.

The problem is complex, which is why my 2nd bullet point was "Sold a Story omits basically any nuance for shock facts". Another way of saying this is "school isn't a restaurant where you pull up and order an education from an unskilled worker". I get that it's high stakes and people have super bad experiences with educators (I have, for sure), but we need to appreciate the nuance here.