Though I’m not an expert on what students should and shouldn’t be able to do as readers and writers at an early age, I do teach students at the grade level this lesson is intended for (first grade?). The lesson does seem to be very age appropriate and it contains a variety of learning activities for students with different learning styles (visual, auditory and kinesthetic).
There was a link to a web site contained in this plan (starfall.com) which I went to and explored for a bit (FYI: I had trouble using this site on Firefox for some reason. It seemed to work just fine on Safari). According to this lesson plan, the teacher models navigation through this web site. It is not clear whether or not students will have a chance to use the web site on their own or in small groups at some point. Having said this, giving students the chance to use this site on their own or in small groups would seem to be very appropriate since it does seem very age appropriate.
As I stated in my comments, I had trouble accessing starfall.com on Firefox but it seemed to work just fine on Safari.