There was no such thing as tab when I started. We wrote in our Simandl books above the note which finger to use and which position, if applicable.
I don't think that being able to read music makes you a better person, but I don't see how anyone could reasonably argue that reading TAB is better than reading notation; maybe easier for very basic pieces, but not better.
I know I sound like the old guy yelling "Get off my lawn" but today it often seems that people are looking for the easy way of doing things. Becoming a good musician takes a lot of hard work, there are no shortcuts. Everybody likes to point to the guy who never took a lesson and can't read a note but is a great player (and I've played with two during my time). The reality is that I've never known anyone who took lessons with a good teacher, learned to read music, and learned some theory and thought it was a waste of time. I've also never lost an audition because I knew too much.
You probably missed my earlier post where I mentioned I am a teacher with 15-20 weekly students and I require all my students aged 16 or younger to engage in reading standard notation and other formal music principles.
For my busy adults who do not wish to engage in anything quite so academic, yet desire to learn their favorite songs and enjoy their newfound hobby, there is TAB.
Oh, I also allow my young students to use TAB if the piece is years away from being read in standard, but to keep them motivated and interested in their instrument.
You may have missed my post where I mentioned that there was also no TAB when I started playing.
No problem. I liked the rest of your post, some very good points there.