I think yes OJT (on the job training) is much better than book learning. Learn by doing. One good example: Ever try learning to swim from a book?
Is Hands On Learning (Like Making Butter, Cheese, And Playing Games) Better Than Learning From Books?
Yes, i believe so. With hands on learning there is direct communication, and the involvement of the rest of the body in the learning environment makes the lessons more memorable and easier for a lot of people to 'get'. 
All learning is good, but some people seem to do better with hands on learning, they get to relate better than just hearing it or seeing it written on a black board.