In order to pass PT school, you have to have the practical skills in the classroom as well as in the clinic. In order to pass a clinical, you have to pass certain criteria as designated by the APTA, which is centered around how you perform in the clinic.
As most practicing clinicians will tell you, you only learn so much in the classroom/labs. Most PT skills are developed in the clinic, both during clinicals and long after you have graduated. By the end of your clinicals, PT students pretty much have to take up a full patient load (simple and complex patients) with only some help from the CI. That means all hands-on in my book.
Cadaver labs vary from school to school. Some have their own labs. Some share with the medical school. Some share with the OTs. Some only use prosections. And some schools only use computers.
....oh as for the brain surgery, I was given a list of surgeries and I chose that as I knew I would probably not get the chance ever again. Truthfully, of all the surgeries that I've seen, it seemed much more "clean" than watching a shoulder surgery in terms of blood, etc. One advantage of watching surgeries as a student is that sometimes you get to treat that patient s/p surgery.