What "action" does the knowledge from academic research provide to a grad student?

I think the sentiment is not to avoid learning or reading, but to have a purpose.

If you are miserable reading academic research papers in your basement everyday for no reason, I would recommend you reconsider.

If you are reading them because you want to cure cancer or get a job, then that's really a different scenario.

It enables action. Knowledge is not pointless but it is not the end goal. An education is not pointless but it is meant to lead to some action afterwards like designing a house after studying architecture. That action might even be creating more knowledge (both by researching and teaching), if you are thinking about a career in academia.

I'm actually not sure whether I fully agree, I think that knowledge can also be a goal in and of itself sometimes.