Automatic Updates

Does the automatic updates of a computer really needed turned on?

No, they don't HAVE TO BE, but it's a generally good idea. Security and other bug fixes.

Personally, I only set it to check and notify because I don't always want everything Microsoft/Canonical seems to think I want, don't want it to download and install in the background and especially don't want it to wind up restarting my computer.

I keep is turned off. I realize I don't need any updates on my computer and just keep my settings. I'm just confused with this

You're missing out on security, stability and other bug fixes then.

Indeed. If you know what you're doing then it doesn't take much effort to manage it yourself (the check and notify setting, as benji mentioned) but for the average user it's probably better to leave automatic updates on. If you're not going to do that, then I'd recommend manually checking for the latest updates at least every once in a while, starting sometime soon if you've never downloaded any of the updates before.

Personally, I only set it to check and notify because I don't always want everything Microsoft/Canonical seems to think I want, don't want it to download and install in the background and especially don't want it to wind up restarting my computer.

This.