The narrowing of focus that you describe is related to regular reading as it is taught in school. There we were taught to narrowly focus on one word at a time.
PhotoReading is done by allowing our gaze to relax and open up so that we see become aware of the entire page. Yes we see all the words and they may be somewhat fuzzy.
Remember with photoreading we are not interested in becoming consciously aware of the words on the page until we start activating.
If you want to practice getting into photofocus explore stereograms (3d viewing). An entertaining way to practice rather than just a book.
Alex