Since the subject is "learning" by ear, and since some people are making value judgements about which way is better for learning music, I think I should mention something that I witnessed recently at the Getaway. I played, at a workshop, a piece of music that I have been playing for several years, and that I have fully internalized (and that most of the time, if I have played it enough recently and have not forgotten the chords for it, I can play without sheet music). I used sheet music on this occassion since I haven't played the piece in a long time and I wasn't sure I would be able to remember the chords (it was a Finnish waltz, and the chords really need to be played a certain way to get the full emotional impact of the piece).

Some of the other people wanted to try playing it, so they borrowed my sheet music and gave it a try. They are good and skilled musicians and they, after playing from the sheet music a couple of times, had fully internalized the spirit of the piece and did a better job than I ever have in expressing that spirit while playing the piece. All this while they were still using the sheet music.

So I disagree strongly that using sheet music, either for learning, or for performing an already learned piece, in any way hinders someone from internalizing the feel and spirit of a piece of music, or from expressing that feel and spirit while playing the piece. It may hinder some people, but it in no way hinders everyone from doing so.