It's pretty much all been said but I'll through in my bit too.
In reality, I think the more well rounded one can be with the musical knowledge the better off they will be, so if one can do both it can't hurt. That being said though, I think it really it depends on what and how you are doing your music. If you want to be a studio musician,or are doing covers, playing with other readers....you need to read. If on the other hand you are doing your own thing, it may not be necessary.
Over the years having been in several bands, (jazz mostly)I will say my preference for playing with other players has been to have people in the band that could just feel it (non readers)over the readers. The readers to me had too stringent and restrained of a style, too mechanical. For me they got too bogged down in the technical aspect of playing rather than getting into the groove and feel of the piece.
Me, I read only enough not to hurt my playing.
jam on,
Terry
[This message has been edited by trtjazz (edited 08-02-2002).]