I think the perfect blend btw classroom and practical training can be compared to the sport of swimming.In swimming the theoritical part is explained by the instructor,but a person can only learn swimming in water which is the blending point.
Similarly a classroom training is required to build the theoritcal framework,platform and concepts.A labourer cannot run a machine(for eg. manufacturing of spare parts of a car) if he doesnt know the working behind it.).A practical approach should be given immediately after the training.
I agree some subjects can be learnt only theoritically but subjects which require practical approach should be taught practically.
Having said that,there have been exceptions like Dhirubhai Ambani who without the education platform built a huge business empire.But that was coz of lack of oppurtunity.But in todays competitve world education in the form of classroom as well as practical training is available for everyone.
MBA institutes put more emphasize on case study approach(IIM Bangalore),presentations,Report activites,Group activites,Visual learning,Role Play,etc.All these come under the practical approach of teaching subjects.
In India,more emphasize is given to classroom education.Coz of exam pressure and competition,students study the subject from exam point of view n do not learn the subject.On the contrary in US,Europe,Australia,etc. the education system is far more practical oriented.That is the reason y students go abroad to pursue further education.Also coz the Indians are good at rote learning and slogging,back office work is outsourced to our country and much of the front end activity is done by the other countries.
So institutes,schools,colleges in India shd change the system of teaching(starting from the primary level).This is will give better returns in future after 20 years.
So to conclude, a perfect blend shd be thr btw both the forms of training.