I think listening to and learning songs is very important. You can for one get some licks from songs you have learned and use them in your own playing, you can see how a guitarist applies his abilities and theory to make good music, you can learn many different songs spanning over many different styles and create a blend of your own.
Dream Theater didn't pick up their instruments and start playing extremely complex stuff. They learned how Rush, Yes, etc, made their songs, and took their take at it. Same with all bands.
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