Sigh. You need both. The reality is that there's a lot of book-learning in the world. You're never going to build a rocket to the moon by starting in your backyard with some sheet metal - your lifespan isn't long enough if you take that approach. You have to read books written by people who have gone before, and learn from their mistakes, which you can do at a far more rapid pace than you can by making all those mist…
I disagree. The purpose is not to test if you can read a passage. The purpose is to test if you can show someone else you can read a passage. That's not only an incredibly important distinction, because the ability to communicate is an evaluatable skill, but also the skill itself is essential to have.
On the other hand, I do have to admit that a lot of tests are designed to evaluate things that can't really be evaluated... but that's largely because decent testing is hard to scale.