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Hi Jeff,
No, CGI and FastCGI certainly aren't required.
If you go into System Settings -> Server Templates -> Default -> Apache Website, you'll see an option named "Default PHP execution mode" where you can choose a default between CGI, FastCGI, and mod_php.
That said, if performance is your concern, you may find similar results between mod_php and FastCGI -- both are going to cache your scripts.
The big thing about FactCGI is that it both caches and provides the security benefit of running as the script owner, rather than as Apache.
Have a good one,
-Eric