I feel like there is some value in the stress of the test.. because in life we have to face all kinds of deadlines and "tests" as it were, so we may as well get used to it. The best kind of test is not about memorization, but about processing information, I think.

For example vocabulary tests are dumb. But a test where you have to use some new words and put them into paragraphs, that might be useful. Or instead of memorizing math equations, actually using math equations in some kind of meaningful way.

The more it is a "real world application," the better. The big problem with school IMO is how much we stay in the textbook due to convenience.