Ill post mine, since I believe I have something relevant to add.
I have a bachelors in the recording arts, and a post grad in sound design. Both from two of the top schools you could go for such disciplines, Middle Tennessee State and Vancouver Film School.
What I know is that before I went to these schools, I was just a guitar player with basic knowledge of signal flow and that I knew something happened to the signal with stomp boxes before it got to my cabinet. What I knew afterwards happened to be years of theory, technique, practices of the industries, and a more rounded understanding of the business that I planned to pursue... and I was only 23 years old.
These schools will teach you the practices and techniques used in the industry right now. As well as new concepts coming down the road or just now emerging into the industry. US universities will be more geared towards theory and how it WAS done, in addition to knowledge grounded over many sub disciplines within the array of jobs that make up the audio industry. While tech schools will focus on the more current, yet leave out a good chunk of past practice, understanding of the industry from past to present - leaving a more focused gaze on a specific line of work once you graduate.
Yes you can buy books, read all the threads you want, re-design all the media you can find, and bug the living poo out of the people in the industry right now on all the basics, not to mention make a living within the industry. And you can be just as successful as anyone else.
However, what I do know is the industry is not what it was in the 80's. Or the 70's for that matter (Video Games) and DEFINITELY not what it was in the film industry. The people leaving the industry now found themselves in it before they knew what the job title was in most cases. You are just now getting the steady flow of graduates that are actually studying what they never studied to do in the first place. The amount of change that has occurred in the business practice, techniques of content creation, technology, and basically everything else to simply create the same art that was invented out of the realm of this type of media engineering is staggering. And whats even more daunting is that this curve that we follow on how we create this media/art is not linear. Its exponential. One may say that this is the reason why NOT to go to school for this type of deal, but I disagree. Its a reason to CATCH UP.
My point is, if your family isnt in the industry, and you never worked at a radio station or grew up working in a posting house, or had the luxury of following in the footsteps of a more knowledgeable person through an internship or apprenticeship AND/OR you have no past experience in this type of industry... I think its a good reason to go to school. Theres much to learn, and its just continually piling up on top of what should be known to work in the industry.
To sum up, and for people who have misunderstood my post:
I think schooling is good to condense many years of trial and error, others experience and techniques, and understanding of the industry in a shorter amount of time than what it would take if you knew nothing of the industry at all before you decided to pursue it. What you end up with is a very broad knowledge base, and the ability to pick a path within that base that you excel at, and run with it. Beyond the above mentioned points, it helps you figure out what exactly you want to do in life within the entertainment industry.
However, I feel with todays access to information - the material is out there. And if you have enough get-go in you to find and learn all of it - then you are saving a shit-ton of money. Go to conferences, join the societies, check out webinars and online tutorials. School is expensive. It can really make a dent in your ability to move into the correct area after graduation as its possible to have sucked your finances up. Many cons of the schooling option reside with the financial burden that can be placed upon your shoulders.
I agree with Utopia. It is learning by doing for sure, but if you can hack absorbing an enormous amount of information, practice, and get a hands on look with facing the amount of pressure that exists out in really doing the type of work that will be asked of you within the industry (not to mention getting into some of these schools' programs in the first place) schooling is one hell of a way to fast-track yourself up-to-date with much of what is out here now.
Also like Shaun says, if one already has the "in" into the industry, maybe you shouldn't go and try working a different angle. Its all up to you in the end. It could be easier for someone to slide in from the side than from the ground up.
If you go to school thinking you can school the day, party at night... you may find yourself on the short end of the stick. Only a very small percentage of people can pull that off and come out actually knowing what they are doing.