A short word like "that" is read at once, especially because it's common. So no need to backtrack.
A less common word like "phoenitic" or "subvocalizing" is read as you say. However by the end of the sentence we know how to read "phoneme" because we encountered it 3 times in one form or the other.
A less common word like "phoenitic" or "subvocalizing" is read as you say. However by the end of the sentence we know how to read "phoneme" because we encountered it 3 times in one form or the other.