There are many different approaches to teaching and different pupils will respond to different ways. My aunt, a retired Primary school teacher, despairs when she sees the latest rush to 'phonics for all' or whatever because, although phonics are useful to some, a combination of techniques is what's needed to reach all students.
I don't see what's wrong with mixing some rote learning in with the development of creative and analytical skills - both are needed and why should we neglect children who respond better to more traditional methods?
S&G should be marked in all exams, simply because not being able to write properly makes you look thick when it comes to job applications. I teach at a university and by the time I get a roomful of 18-24 year olds who can't spell, construct sentences, who don't know where to put a full stop or how to use capital letters, it's too late.
And for those saying 'why should you have to spell correctly in exams when you'll always have spell checker in real life, I've got two points:
(a) spell checkers don't pick up homophones (words that sound the same, but are different - common ones I see are 'baron' for barren or 'manor' for manner);
(b) this reminds me of a student who asked why couldn't they have access to the internet during exams, as he couldn't see a situation IRL where he wouldn't be able to Google anything he wanted to know. To which I replied 'how impressed would you be if, every time you asked me a question in class, I had to Google it because I didn't know?'
We're in danger of prizing the ability of students to analyze information that is put in front of them over the ability to retain and synthesise information, to make connections and to be experts, whereas both skillsets are important. That act of retaining information can start with memorizing words.