Isn't reading more like pattern recognition than parsing letter-for-letter? It seems to work like that for me. There's also the somewhat famous text where each word's letters are jumbled and people can still read it fluently. Maybe that's not the case for everyone, though, and people have different ways of making sense of written text.

Edit: Quick search turned up this article about the jumbled-word phenomenon, containing the example text at the top: https://observer.com/2017/03/chunking-typoglycemia-brain-con...