In my Waldorf training, the young child's development of the fine motor skills was viewed as more important than teaching rote skills(such as recognizing the sounds of the letters).
Philipp Martzog, a researcher, found that better fine motor skills in the early years might have a direct relationship to higher intelligence level and specifically – deductive thinking.
In the Waldorf schools, the development of the hand includes finger knitting in kindergarten and actually knitting in first grade.
I found in my kindergarten, children found deep satisfaction with learning how to finger knit and making bracelets.