The best replacement for phonics is whole language.

The best alternatives to phonics are rated as following:
★★★★★  whole language
★★★★  phonemic awareness
★★★  phonetics
★★  sight words
★★  words
★  whole word
★  sight reading
★  worksheets
★  phonological awareness
★  spelling
  phonemic
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  memorization
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  look and say
  phonemes
  whole word approach
  your baby can read
  whole language reading
  sentences
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  decoding
  aw au
  whole language approach
  whole language which is better
  word recognition
  graphophonics
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  letterland
  hooked on phonics
  whole language research
  look say
  alphabet
  analytic phonics
  balanced literacy
  no phonics
  word study
  abeka phonics
  open court
  phonology
  whole word reading

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Speaking about phonics, one probably shouldn't forget about funnies.

Other search terms related to phonics and their ratings are:
★★★★★ funnies
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Google Trends

Scale is based on the average worldwide traffic of phonics in all years. Click on graph for more.
phonics
whole language
phonemic awareness