Phonics and diction are related

Something that I find irritating, is when people say that the correct spelling of a word is wrong, because no one says it that way. There are groups who protest at spelling bees claiming that we need to spell all words phonetically. That does not sound like a bad idea at all.
What they would discover, is that they all mispronounce common words and speak with poor diction. Allow me to rephrase this: most words are spelled phonetically, they are pronounced wrong. You may ask about words like “city” and “hour” and their phonetic spelling.
These words have rules which  govern their spelling. These rules were first written for American spelling by Noah Webster, the same man who wrote the first dictionary. He corrected much of the accepted spellings from the British, so that they would be more phonetic. Back in that time, words had multiple accepted spellings, as did names. If you don’t believe me, look through some old manuscripts.
Another point of interest is that many of our words come from other languages, like fjord or rendezvous. Should these be respelled to accommodate a more phonetic approach?
I hear that phonics are taught in schools, but I do not see very much of it. The list of “sight words” seems to be growing as more textbook authors don’t truly understand the language. The rules of phonics are being traded for rules of test taking and bubble filling. The need to pass students quickly through a semester has a higher priority than learning proper elocution.