It comes down to whether you plan to be a recreationalist or a (semi)professional. Being able to read music and understand theory is ALWAYS gonna be helpful. If you are gonna be one to make it professionally, you better learn to read, write, take notations, etc. because you will have to be able to learn on the fly and perform styles you may not be readily accustomed to performing. Personally, I`m old and have never been more than semi-professional and enjoy playing live within the genres I grew up listening to. Go with what you aspire to be, playing for fun or playing for fun professionally. Expose yourself to different ideas and develop from there. You will know how far you need to take your skills, but if its not fun and you find yourself not enjoying the experience, it may be time to find a new direction.
Well said. There are good points in some of the above responses too. If you want to be able to play other people's music, or a variety of different types and styles, reading seems like an essential skill, especially if you are a pro and need to be accurate and on top all the time. I've heard it said that the famous musicians who didn't read primarily played with only their band, or were the ones leading the music, so made the selections. If you're going to step up on a stage or audition with a pro band chances are someone will hand you a sheet with more than chords on it. Probably something with complex time and multiple key changes on it too. Me, I'm just a recreational guy. I just play for my own entertainment, but I do wish I could read. I have to play by ear for the stand-up guys lessons that I like, for learning jazz. Slow process, but I get it done.