So this year (3rd grade) Elazar finally made that breakthrough in reading insofar as I felt comfortable that he joined the world of literacy. But he was not interested in reading books. Occasionally, on Shabbos, when it was bedtime and he was desperate, he would read a Dr. Seuss level book. It didn't really seem that reading was seriously kicking in. But he did read every day on the computer and seemed to be able to read whatever he wanted to. So in terms of reading being practical and enjoyable for him, he was satisfied with his reading level.
The past few nights, he's been calling out in bed, "I'm up to page 32!" "I'm up to page 56!" I didn't realize he was able to read books that long. Today he asked me to request a book on the back cover of the book he is reading, Franny K. Stein. I looked up the reading level of that book. It's 3.7. Or grade 2-5. So looks like he's on track. I read that kids who are unschooled who learn to read later than the usual first grade do end up quickly reading on grade level. Looks like that is the case here. It was a few months from when he started reading sentences to when he started reading books, and eventually he picked up a book on grade level that interested him.