Is being able to sight read music a good thing?
Yes.
Is standard notation for stringed fretted instruments superior to TAB?
Standard notation is a far inferior method to convey what should be played when it comes to stringed fretted instruments. Especially since almost all TAB programs include standard notation.
Not sure I agree with you on that. Tab gives you the benefit of where on the guitar you're supposed to play the note. On a guitar (for example) that can be helpful as you have 3 or 4 places to find middle C.
However a seasoned guitarist will quickly figure out where a particular song lies best on the fretboard without the tab. For me that experimentation is useful. I usually create multi-verse and chorus arrangements of a tune. I generally play the melody in more than one shape on the fretboard.
Its less monotonous.
Where tab is clearly inferior is rhythm. Tabs mostly do not deliver complicated rhythm to the player.
I do think that the best is having both. That's the cats meow. The tab definitely gives you a jump start especially if you're trying to do some note for note stuff. Not my bag, but a few signature licks on a guitar tune, is definitely a crowd pleaser. Tabs can get you there quickly.
If I have to pick one or the other, give me the notation.
It may be "far inferior" but its still better.