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I think it helps make the game more interesting, but it isn't a requirement because a lot of people simply don't care enough to go through that stuff. Games can take a long time, and not everyone wants to take extra time above that to sort out the fluff.

That said, I have put a lot of effort into the background of my own army and fanon to make fighting any faction more plausible. I think Tau are the greatest offenders with their limited empire and non-FTL travel, but your experience may differ.