Of course! That's music the way it should be. That's half the reason for playing (for me at least): to make music and share it with others.
I have to agree with you the the practicing element of it, though. You can get all of the backing tracks and play-along recordings in the world, but not one of them can stand in for the real thing.
It's interesting, though: in Lighthouse Suzuki Strings, I'm considered and "advanced player," whereas in orchestra, I'm considered a "weaker player" (keeping in mind that most of the people in the strings section have been playing for up to four times longer than I've been alive). It's a lot of fun to get to go to orchestra and play with such great musicians. But what helps me improve my tone and musicianship the most? Helping in the little orchestra. Learning to teach is no easy lesson. And, what's more, you have to get it right so that the others can have something to work with (an experienced player can ignore a bad back-up or stick it out through a shaky lead, whereas a newer musician would quickly get lost).
As for playing slower, I have to agree. That's just one facet of my tumultuous relationship with my metronome: I have to start slow. And learn slow. And review slow.
I intend to go back and try it with Orange Blossom Special. I'll let you know how it ends up.