I think the idea is to use Pinyin to bootstrap knowledge of hanzi.
A) This would allow you to use written language to teach hanzi and
B) This would allow you to have children read text that includes words they don't know how to read, by providing those words in pinyin.
I'm not sure how it actually works in Chinese, but as a adult second language learner of Japanese, having a phonetic system I can use to transcribe the logoriphic system is quite helpful.
It's a story teaching the meaning of the proverb 揠苗助长 (pulling sprouts to help them grow). Some of the characters are annotated with their pinyin above, e.g. 揠 yà or 筋疲 jīn pí. This text in particular is a bit weird in that it only uses 揠 yà in the title and replaces it with 拔 bá in the story, so the reader would have to infer that 揠 yà and 拔 bá are synonyms. I think 拔苗助长 is actually the more common way to write the proverb.
A) This would allow you to use written language to teach hanzi and
B) This would allow you to have children read text that includes words they don't know how to read, by providing those words in pinyin.
I'm not sure how it actually works in Chinese, but as a adult second language learner of Japanese, having a phonetic system I can use to transcribe the logoriphic system is quite helpful.