I think* that for those of us that don't have any language learning disability, or "glyph" learning disability -- all symbolic communication is best understood as flow of words/phrases, not symbols -- at least when you're talking about fluency/proficiency/literacy. I believe that's simply how our brains work.
Yes, spoken language is technically built out of phonemes (sounds that we can distinguish, and which carry meaning) -- but there aren't "universal" phonemes (hence most Japanese's problems distinguishing between r/l -- two sounds that are almost identical, and do not carry distinct meaning in Japanese, but do in most(?) European languages).
But the "stops" that allows us to "hear" the phonemes, and even the "stops" between words -- are in fact almost non-existent. This is one reason why we often feel native speakers of a language we've yet to master, speak "too quickly". Our brains are unable to recognize the patterns (words and phrases) from the stream of sounds.
I thnik there's a storng parallel there to how we raed word-picurtes, and not wrods. (Read that line again, slowly).
It makes sense to me that to be "literate" in morse, you'd have to stop looking at the letters, and start looking for the words. Sounds like a great way to learn morse code (and there might be a lesson there about flashcards for foreign languages as well...).