Both of these have a definite place within the English curriculum. There is something to be said for reading quality literature for pure enjoyment sans analysis and classroom discussion. This should be joined with more structured reading, however. Studying and analyzing literature for its components serves the purpose of giving you reading "tools." When you learn to analyze the ways the reader receives information about a character, for instance, you gain experience looking beyond the obvious. Instead of merely developing an impression about a character based on what he or she says or does, you deepen your understanding by including the author's physical and environmental descriptions. When learning about author's purpose, you become accustomed to searching for the motivation behind the creation of that particular work. A study of setting yields not just knowing that a particular story takes place in Anywhere, USA in 1963, but also understanding the ways that the setting is integral (or not) to the story. In Shirley Jackson's "The Lottery" for instance, the setting, a rural, isolated town, is vital to the continuation of the ritual, but in Shakespeare's Romeo and Juliet, the physical setting doesn't have as much importance. Understanding why is understanding the theme, yet another area of study, and understanding themes that transcend time and place, and the reasons why they do, gives us insight into human nature and the world around us.
These exposures contribute to your understanding and growth as a reader so that when you DO read literature for pure enjoyment, it will be a more enriching and rewarding experience.