I don't think that is quite fair. You could say the same thing about law school, or medical school. They give you the tools you'll need to use and hopefully prepare you for how to use them. They give you context for later work. They should also give you enough knowledge to know what you don't know. Not so much real world practice though. Maybe somebody could watch a couple of youtube videos and remove an appendix, but not mine.

There are biz schools that do give real world experience, but students have to be motivated to take advantage of it. I don't understand quite why it has to be book learning or street smarts. Plenty of people have both.

Ed Martin
MicroBiz Made Simple

I graduated from National University with a Bachelor in Business Administration with a concentration in HR.  National University offers accelerated courses in the evening.  My Professors and fellow students were other business leaders and aspiring leaders.  In many ways I learned just as much from my fellow students as I did from the Professors.   All of the Professors were employed in the field they were teaching and most of the students were employed in the field they were studying.  I learned from first hand experience.  I believe in lifelong learning, so although I have not yet obtained a masters degree, my education continues through listening to others, past experience, my own mistakes, and inner reflection.  I highly recommend lifelong learning in any form.