This topic is of particular interest to me; I'm glad someone brought it up. I am completely incapable of performing even the most rudimentary mental math. As you might image, that made learning elementary math (times tables, long division, etc) a nightmare. Once we got past all that, though, I started to excel in math. This was partly because classes started shifting away from memorization towards problem solving. More so, though, was that I had developed the discipline and rigor that is required to study math at a higher level. Through highschool and college, I watched as other students started leaving math because they hadn't developed the level of discipline required.
So, I absolutely think we need to spend more time teaching how to solve real-world problems with math and less time how to plug numbers into formulas. Yes, math computation has a very important place, but with the ubiquity of calculators and computers, it is not what should be focused on. By focusing on real-world application, too, hopefully we can get more people *interested* in math, which is paramount to them actually wanting to study it.