So, in case you are curious, what we ended up doing for summer was this:
Noodle continued reading aloud (some Encyclopedia Brown books and others) a few days almost every week, did a couple weeks more of Writing With Ease and a couple chapters of Math. Spud kept working on his Progressive Phonics flash cards and stories. Other than that, we've had a lot of unstructured time, so it's been good.
A few months back, we started checking out books on tape/CD for the kids to listen to at night, which Noodle absolutely loves. I think Spud falls asleep too fast most of the time to enjoy the stories much. Noodle just finished listening to all four books in the Dealing with Dragons series, and she told me last night that when she is ten, she wants to read all the books by herself. I think she chose age 10 because it seems far enough in the future that she feels like her ability will be up to it by then. I thought that was great, and I was so happy that she is so excited about the books. Books on tape have been great because I have a hard time carving out read-aloud time with them. We can usually get two or more picture books in during the day when we are "in school," but after history and the other reading I do with them, I'm tired. David typically reads a chapter to them at night from a book (they've done all the Chronicles of Narnia a couple times in Noodle's lifetime and are presently reading the 3rd Alcatraz book). But, her love for these Dragons books has really shown me the power of books on tape. She is so interested in them, which is awesome!