I started back to school in 2002 (and graduate in 16 days). All of my texts that mentioned the subject, advocate a combination of phonics and real literature. I think you'll find there has been something of a shift in the last handful of years. I'd expect liberal bastions to be more stubborn about it, but I'm in Kentucky. :)
While attending college in Colorado (I was in the teacher ed program but dropped out...due to the insistence of liberal teaching methodologies throughout the college and town), I wrote a term paper in my History of English Language class on phonics vs. whole language, and provided evidence as to why phonics was a better way for children to learn to read. My professor wrote she was "giving me an A, but could not disagree with me on a subject more strongly, but because of the thoroughness of my research and how well it was written, the grade is deserved." I don't know what colleges she attended to get her bachelors and doctorate, but to call her a liberal is an understatement. (And she was NOT in the Teacher's Education Program.)