I would argue that memorization of an algorithm or formula without understanding of how they work cripples your ability to apply them creatively.

However I would also argue that memorization is the precursor to understanding.

I think the main issue with rote learning in schools is when only memorization is taught and tested. For example: teaching and testing how to solve the same type of problem and grading the accuracy of solving without having any critical thinking/application problems is, in my opinion, a mistake.