Nope, compiz is not a necessity at all for having your setup look good. But, at the same time, there are some people that are willing to trade off the performance hit they take by running compiz because of what it gives back to them. Looking good is one thing, and a lot of people savor the 3D effects, but I personally like how it lets me stay organized in a pretty easy way. It's also useful to be able to make windows translucent, negative, etc. So I'm not going to say compiz doesn't have any worthwhile merits, since I seem to believe it has enough to make me run it.
I just know I'd be a lot more disorganized and lost without it, being the type of person that usually has tons of windows open, working on 3 different things, etc.
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