how about doing both? we've removed industrial arts and home ec from most school programs, and we present school with a very strong emphasis on office skills (reading, writing, organizing, etc.) while cutting way back (and even eliminating) skills-based things like shop, woodworking, and cooking. not everyone is headed for an office job in life, so practical skills should absolutely be emphasized a lot more than they currently are.
i think that kids leaving high school should know how to cook basic meals, change a tire, balance a checkbook, hammer a nail, and so on. if that means adding more classes or another year of school, so be it.