The idea is to be literate and fluent with regards to reading and listening to native Japanese material. After that, the idea morphs into reading and listening to A LOT of native Japanese material. You won't write as well as you read and you won't speak as well as you can listen, but you will be able to write and speak to a certain extent. It's hard to train and correct mistakes to writing and speaking without using a tutor or something like Lang8 and iTalki.
By the time you finish just the basic course, you should be able to follow along with a Japanese TV show that has Japanese subtitles.