UD: I believe you and I have actually always been on the SAME side of the fence on this issue. My point is that it's not a bad idea to have a fakebook conveniently handy for those situations when a memory lapse may have prevented me from feeling confident enough to perform a song that I may not have performed in a LONG time (or one I NEVER PLAYED before). Playing from the seat of your pants (solely by ear) has its merits (spontaniety), but having a lyric/chord chart handy adds insurance that I'll be able to pull off an unfamiliar (or totally unrehearsed) song succesfully. At a more casual laid back environment, I might take RISKS to play an unfamiliar song totally by ear alone, but not at a more toney venue where the stakes are much higher.
Use of charts is also dependent on the type of gig venue. For a stage show where YOU are the 'main attraction', lyric sheets and/or chord charts are of course a no no, but for instrumental background music, I see nothing wrong with utilizing them if needed, especially if you're playing with other musicians who need to know 'what changes' you're using. Utilizing charts helps to keep all band members on the same track.
Scott
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