I agree with you. To do multiplication by any non-parlor-trick method you have to be able to multiply single-digit numbers. If you don't memorize the table then every time you do larger numbers the process becomes that much more of a chore.

Now, that is not to say that you should forego understanding multiplication. But forcing student to memorize the basics (like forcing them to memorize verb forms) (1) makes their life easier later on and (2) gives them the chance to spot patterns themselves.