Is the SEO plugin necessary?

The main purpose of SEO plugin is to give you more control over SEO-related factors (titles, excerpts, meta tags and so on). It doesn’t do anything magical, just an editor to let you fine-tune beyond native WP capabilities.

So necessity equals if and how much of those aspects you are willing to spend time on.

and to what extent does post name in the url make a difference as against the standard numerical format of wordpress urls?

This is considerable factor. URL is important place for determining what page is about by search engines.

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