It doesn't matter whether onset and rime predicts reading better than phoneme awareness does or vice versa.

Hulme et al. argue against our hypothesis that there are two routes from onset and rime awareness to reading: an indirect route whereby onset-rime awareness feeds into the development of phoneme awareness which in turn affects children's reading, and a direct route by which onset-rime awareness makes an independent contribution to children's reading. The evidence that Hulme et al. present against this hypothesis is not convincing, partly because our hypothesis actually predicts most of their results and partly because of weaknesses in the design of Hulme et al.'s study and in the unusual procedures that they employed.