Does doing lines and circles exercises for a hour daily is really useful for beginners or this time would be better spent on doing different studies? I figure line confidence would just come naturally after years of drawing then?
Line exercises, especially circle(ellipse) exercises, are viable exercises for as long as you create art. If you get good at them with a pencil, move onto a fineliner/pigment pen.
You should do blind contour drawing as well to build your hand-eye coordination. There are a few good resources and information about blind contour drawings on the web. Make sure you understand the purpose of it.
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An hour daily is overkill. Unless you realllly enjoy doing that sort of stuff.
An hour daily is defineitly overkill I tend to do it for 10 to 20 mins or so before going onto an hour of gestures for a warm up.
If you know how to write an "i" and an "o" without having them look deformed, then I'm sure you've already put in enough practice doing lines and circles. Move on.
If you can't, then you might need to practice until you can.