The only people I know who are productive as composers or arrangers are familiar with theory.
You can get so far with just an aural tradition but the invention of writing helps.
I know music notation and can write things down, but I'm not a good composer. I'm at the mercy of others to write new material if that's what I'm interested in playing.
And writing it down in a way that other musicians can understand is of nontrivial value if you want people to play your stuff.