Sometimes simple is better. Especially when it comes to educating young children.
Monkey and I love using Google Docs to practice Phonics. This works rally well now that he has mastered most of the alphabet an we are working on word families. I have him locate the beginning sound on the keyboard and type it in. Next he uses Docs to enhance his font. Next I type an a word family ending and highlight it. When we finish building the word he practices sounding out the beginning and the ending.
I like to spice this activity up by having him bring me an item that belongs to a specific word family. This usually results in him rhyming other words that match that word family. Finding word endings in everyday things has made a big improvement in how the little guy retains letter sound association.