It's very much essential, in the sense that you
need items that are only attainable via the cash shop. You
can buy diamonds from other players instead of paying for them yourself...but when it comes down to how much of the CS stuff is actually necessary to progress, you're looking at a very costly, long time before you can compete with people that cash shop freely, or have been at endgame long enough to have enough gold to buy whatever they need from diamond sellers.
Oh, and no one mentioned the best part - in 3-6 months, the gear you just worked so hard to stat will be redundant. Repeat process until quit.
Welcome to RoM.