There is a lot at play here, so it's hard to narrow this down to a simple "high rep vs. low rep" kind of debate. However, here are some general comments:
1. Weight lifting can, without a doubt, build very functional strength. However, that requires training in a more functional manner, utilizing your body in the way nature intended. This means absolutely NO machines and essentially NO isolation exercises. In general, this means that body building routines are one of the LEAST functional ways to train. Practical, functional weight training will focus around compound and olympic lifts, such as the squat, deadlift, overhead press, clean & jerk and so on. These movements translate extremely well to the real world because they use your entire body as one unit in a very natural way. You can also do exercises that are not purely weight lifting, such as rope climbing, pull-ups, dips, working out on rings, box jumps, plyometrics, etc. Short of doing the actual thing you are training for - e.g. break dancing - this is as functional as you can get.
2. You have to be careful when defining strength. For example, who has a stronger upper body, a great breakdancer or a great weight lifter? Well, that depends on what they are doing. The weight lifter might be able to overhead press WAY more than the break dancer. However, flip him upside down into a handstand - which is very similar to an overhead press - and the weight lifter won't be able to do any of the feats of strength the break dancer can do. The break dancer will have developed all the coordination and balance muscles to keep himself upright, do handstand push-ups, one armed handstand, etc. The weight lifter, without having developed his body for this, won't be able to apply much of his strength here.
3. Your body and muscles can be trained in many different ways. You can work out to maximize muscle hypertrophy (the size/mass of the muscle), which is what body builders typically do. This kind of strength is not going to be very functional. You can do a purely power lifting routine which focuses on increasing your abilities in three specific lifts: the squat, bench and deadlift. These are compound lifts and they develop raw strength. They apply fairly well to life, as long as speed/explosiveness are not a factor. You could also do a purely olympic weight lifting routine, which focuses mostly on two specific lifts: the clean & jerk and the snatch. While typically having less raw strength than a power lifter, the quickness & explosiveness of an Olympic lifter will apply very well to life where such speed and quickness are necessary. Aerobic training is also extremely functional in real life. Running, swimming, biking, etc all (obviously) transfer very well to real life. Even using gymnastics to train is very functional. Exercises done on rings, parallel bars, etc. build explosive strength, balance, agility, etc. I'm obviously over-simplifying these exercise concepts, and there are many I'm skipping, but I think you get what I'm saying.
4. If functionality is your main goal, you need a routine that touches all the bases: you need raw strength at the base, you need to be able to use this strength quickly and explosively and you need a cardio/endurance component to be able to do it for a long time. IMO, the ideal routine for this is
Crossfit. It is a combination of power lifting, olympic lifting, gymnastics, plyometrics and a whole lot more and is specifically built to be non-specific. "CrossFit maintains that proficiency is required in each of 10 fitness domains: cardiovascular/respiratory endurance, stamina, strength, flexibility, power, speed, agility, balance, coordination, and accuracy." They hit all the bases and try to build a program that is as functional as possible. I started it myself just recently and you can read my experience with in in
my journal.
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