I play classical as well as other genres, and obviously if you're pursuing the fine art of classical guitar sight reading is a necessity. I think that it's use kind of ends there however. Though I bet some of those jazzers also like to sight read. It seems to be irrelevant when it comes to rock and other styles of music.
Does it stifle creativity? Of course not... how could learning more ways to communicate with music stifle you?
