This reminds me of the debate about sight reading.
At some point people noticed that really fast readers that retained a lot of information weren't reading the words, they were recognizing them. In fact you could mangle the spelling for the words, or even leave many of them out, and it wasn't much of an issue for the skilled, high retention rate reader.
Contrasted to poor readers who had to sound out the words in their heads (this is where the moving your lips when you read insult comes from), the skilled readers could easily read twice as fast.
Some geniuses in our educational system decided that they wanted kids to be good readers, so the kids needed to learn to recognize the words, not reading them.
Well lets save some time the educators thought, lets stop teaching things that the students don't need.
Many schools stopped teaching phonics, and started teaching sight reading. The result was high school seniors that could barely read the front page of the newspaper.
The lesson was that those good readers were sight reading because they read alot. They didn't have to stumble over the words, and sound them out in their head because they they had worked out the phonics years ago, and had seen those words hundreds or thousands of times.
I think point shooting is kind of similar. Through sighted shooting you learn how to point the gun and build muscle memory. At some point the skill level is high enough that you no longer need the sights for close in targets.
If you read books about USPSA shooting at high levels, one of the things the authors talk about (I have Brian Enos in mind specifically) is learning the level of precision required to make a specific shot. As you learn what's required, you learn how much sight alignment is required, and discover that at short ranges you're just putting the gun in front of your face and slapping the trigger.
While that might work out for point shooters in the typical 3yd confrontation, their tool box is missing some key tools if they need to shoot further away. In these days of audio tapes from the Middle East talking about more Mumbai style attacks, I think its misguided, and robbing the shooter of their full capability.