Ah, I perhaps should have read all the comments before posting here, because it seems that you're answering my question, and confirm this idea that phonetic interpretation of written Chinese is a "recent" development.
This idea seems to be foreign to all native Chinese speakers I've encountered, and this seems to be in contradiction with what I can grasp from research.
If I may, I've got another related question: Chinese speakers all parrot this idea that literary Chinese is to modern (let's set aside character simplification) Chinese what (ancient?) Greek is to English.
But it's not my impression, at all; my intuition is that they don't properly understand neither Greek nor literary Chinese. For example, a modern Chinese speaker can be expected to read literary Chinese and at least make some sense out of it, but a modern English speaker won't even be able to read (ancient?) Greek, let alone interpreting it.