I don't think it's necessarily an either/or situation.

I learned to read before I learned to play by ear, and I'm very good at both. So are many other musicians that I know.

On the other hand I also know some musicians who are good at one but not the others.

Personally, I think both skills are necessary, along with at least an understanding of basic music theory.

You could be a great author of novels without learning to read or write by recording your voice. (similar to reading music). And you can do it without learning grammar (similar to music theory). But most people cannot, and the few that do have extraordinary talents that we mortals can only dream about having.

There are dozens of different skills involved in playing music, and they aren't distributed evenly among us. Reading, playing by ear, transposition, improvisation, phrasing, dynamics, are just a few. Some people seem to have them all, others have some strong and some weak. When you practice, it makes sense to practice what you are weak at.

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