There’s so much to talk about in a seemingly simple question. As others have said, you never stop learning. There’s nothing wrong with reading, either - it is a skill which is envied by many accomplished musicians who don’t have it, or don’t feel comfortable with their level of reading. You already know more than you know you know, you know? 
There are many ways of ‘knowing’ an instrument. When you look at the chord symbols and can shift smoothly between all of them without looking at your fingers, for example. That might involve only 4 chords, but it’s still an accomplishment, even if all you do is a simple strum. Frank Zappa said he didn’t think he was a very good guitarist because he still had to look at his fingers when he played. (!?!)
Playing with others can help to increase you confidence. Don’t sweat it - think of it as a number line. You will fit in somewhere between total beginner and monster, just like the rest of us. When you work with someone less experienced, less confident, whatever, be respectful and try to find something the two of you can do together. Teach - it is one of the best ways to learn. And if you’re with a better player than you are, keep what you do simple and try to fit in with them. It can be discouraging to work with someone you feel is totally beyond you, but when that person hears something you lay down and says “Nice!”, you will glow with the earned compliment for days.
If you want to build up your ear, there are lots of things you can do. I find transcribing stuff is helpful; playing along with albums, or using programs like Band in a Box or Garage Band can be extremely useful, esp. for ear training on your own.
What goals do you have in mind? Where are you at in your playing right now? I like to divide my repertoire into four stages - 1) sight reading 2) work in progress 3) polish and perfect and 4) maintain. Looking at it that way, where does the stuff you’re teaching yourself fit in? I don’t play anything from stage 1 or 2 in public if I can avoid it, but everything I play started out as sight-reading somewhere along the line. The goal is to take each piece through all four stages.
Memorization is a different skill - for me, it comes easily, in that by the time I’ve made all the mistakes in a piece at least once and shaken them out, the piece has been gone over so many times that I can’t help but have memorized it. Your results and techniques may well differ.
Anyway, to finish for now, that’s my advice - pick one or two pieces that you already know, (and it doesn’t matter how simple they are!) and polish them to the point where you would feel comfortable picking up a strange guitar or opening a strange piano and playing them. If you need your music, fine, bring it with you. You might be surprised at the reactions of some of the people around you. (‘You can read? Cool! I never learned…’)