The best replacement for sight words is phonics.

The best alternatives to sight words are rated as following:
★★★★★  phonics
★★★  high frequency words
★  site words
  sight words
  dolch words
  decodable words
  fry words
  fry

Your alternative for sight words is not listed? Suggest!
Speaking about sight words, one probably shouldn't forget about samson.

Other search terms related to sight words and their ratings are:
★★★★★ samson
sampson
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sight words
phonics
high frequency words