Almost my entire education has been OJT (On the Job Training). I'm a high school dropout, with a G.E.D. I've spent my entire life, looking up the noses of folks that just assume they are better than me. Gets a bit grating, but the plus side is, is that I have to prove myself, over, and over.
Besides that annoyance, it's been excellent. Directing my own learning has been amazing. Having to prove myself, over and over, and over again, has taught me to deliver results, because no one is willing to front me anything, or give me the benefit of the doubt. Delivery is my "at rest" state, and that kind of thing is hard to teach (Play A Boy Named Sue, by Johnny Cash).
What you talk about works well for people like me (and you, from the sound of it), but a lot of folks need more structure. A lot of institutions also need that paper. There are many doors that are closed to people like us.
My first formal school was a fly-by-night tech school, created to milk the GI Bill, after Vietnam. The school has long since, fallen to dust, but it was exactly what I needed, at the time. It taught me structure, troubleshooting, and problem-solving. When I left, I was ready to immediately jump into the deep end.
I like the idea of vocation-oriented post-K12 schooling, including things like union apprenticeships.
The problem is that, in the US, these aren't really supported by "The Establishment," so we tend to get rather dodgy outfits (like the one I attended).
I have heard that German University is highly vocation-oriented. I've been impressed by many of the Germans with whom I've worked. I feel that they are extremely results-driven. That may be because of the particular company that I worked for, and the types of engineers that our field attracts, though.