Let's ask ourselves:

a.       Why do we need tests?

b.      Do we need grades based on the requirements or solid basic knowledge and developed skills for our students?

c.       Which is better and gives more benefits: practising to pass a test or making personal efforts to research and accomplish a purposeful task or assignment with a due date?

First of all, we, teachers and educators are interested to advance our students giving them lots of possibilities to develop their skills and enrich their knowledge.  
The question is what is the best way to make them become motivated, independent learners who are interested in self-advancement? How can we measure their personal effort and level of their knowledge according to today's standards? Are we ready to change formal tests that we use nowadays to something really different and innovative?

Are the rubrics we have at our disposal can serve to measure a student's progress?
Second of all, we have to focus on developing various skills for our students that should be based on a good basic knowledge of language structures.
Thus, we would need a variety of ways to check what has been understood, learned, absorbed and retained by our students. Fortunately, Hybrid teaching and modern digital tools can supply a suggestion for today's educational process.
The last point of this discussion should be which approach is more beneficial for our students' tests or assignments and projects? No one can give you the correct answer choosing one over the other. The idea is to find creative ways to engage the students changing the process of studies to an enjoyable activity or adventure.

 In my opinion, both approaches should be implemented simultaneously in order to encourage our students to work hard improving their skills and expanding their knowledge.