A sharp knife is practical
A dull knife is not.
A "shaving sharp" knife is thus practical, more then just a parlor trick, but not necessarily a necessity, and ergo can be just a parlor trick if done without necessity but just to show off...
As bluesbender pointed, when working with certain mediums, shaving sharp can be quite the difference maker; scoring leather and slicing tomatoes comes to mind... However in other mediums, geometry and a sturdy "working edge" are more beneficial then whittling hairs only to create a less sturdy edge more prone to chip or roll...
When I sharpen my knives, I test whether they will take hair off my arm to know if they're acceptable to my standards, not "shaving" though, but a step away I guess... My kitchen knives I'll take to shaving sharp, and maintain with a ceramic honing rod, and they'll get resharpened when they no longer take hair with ease...
My work knives and hard use knives however, I'll lean more towards a convex edge, and maintain with a hanging strop, and while they won't take hair for as long, they'll continue cutting quite well for quite some time after they stop taking up hair easily... They aren't "shaving" sharp, but they're still pretty "cut something" sharp, and they'll hold that working edge longer then a "razor edge", and greatly reduces the risk of chipping or rolling during hard use, helping to ensure my knife will perform the task at hand, and not leave me s.o.l.
My casual knives can go either or, most i would say are kept "not quite" shaving sharp, but will still take some hair off your arm pretty easily. Others will scrape up dead skin cells more then hairs, but rest assured will break down cardboard boxes, and/or whittle chunks out of wood for a good amount of time before losing that edge...