definitely not required, although some like a fresh install more than others. personally, ill do it if something feels off or at the first sign of being infected by a virus. which certainly happens less than once a year.
You should never have to reformat your system if you treat it properly. I have a dozen machines that haven't been reformatted in 7 years, and they work just fine (when hardware problems don't crop up)
i wouldnt say "you should never" it's more like "you can never." nothing wrong with a fresh install. cleans out the registry. sometimes updates on top of updates are a bit messy. clean installs are nice.