loom knitting is real knitting.. but.. there are things that are easier to do on a loom (double knitting and 'twisted stitches') and there are things it is easier to do on needles (plain stocking knit or plain ribbing)
it's like cooking ONLY WITH AN OVEN -it can be done, but its hard to make scrabled eggs!
--or ONLY COOKING WITH A BURNER(hob) (--it's hard to roast anything (chicken beef, what ever!)
You could cook lots of good food with only one (or the other!)
but you'd likely end up eating more shirred (baked eggs) than omlets if you only had an oven, and fewer roast chickens if you only had a burner!
Loom knitting has advantages, and with time and practice, you can do ALMOST anything on a loom that you can do on needles and visa versa.. but...
there is a scarf (that has generated a LOT of interest (the Pidge)) its made on a loom.. on a loom, its the simples of things to make.. on needles, advanced knitting techniques are required!
go for the loom. and think about learning to knit too, and don't let anyone tell you loom knitting isn't real knitting!