One of the reasons to play an RPG is for the loot. Loot is integral to the development of a character as he grows in power, unless you want to tackle that great wyrm red dragon or the 20th level lich wizard with a +1 longsword.
And there are two entire trees devoted specifically to the crafting of equipment.
Given that in MMOs, you have to beat enrage timers and mechanics with better gear, then yes, you do need gear in those games.
