I think religion offers different things to different people and and operates differently under different conditions in different environments. So when you ask if people need it I think that the answer is YES, NO, and MAYBE.
I am no fan of organized religion for myself, but at the same time I find great value in a lot of thinking that has been sparked by organized religion as well as music, literature, etc. This goes for all religions with which I have come into contact and spent a little time to try to understand.
Raised a Methodist, became an Anglican, went to Roman Catholic High School, at one time considered becoming a priest, became an athiest instead, and here I am now.... some nonapproved wierdo hindu/buddhist hybrid, with a love for an Indian Yogi and a lust for cosmic experience.
So... needed? For me? Heck yes! It was this "passing through", what was, for me, a gauntlet of bullshit that drove me to continue seeking, to continue with my personal becoming and inspires it to this day. It's like a daily reminder "Don't forget to unlearn some bullshit today."
That's the personal side.
I've met A LOT of people who derive strength from their faith. While I may not understand or agree with their faith or more specifically, the organized religion from which it is derived, who am I to tell them it shouldn't be making them feel safe, good or empowered. All of existence is, to some degree, a charade. We all have our crutches - mine aren't solid gold either 