For short range shots, it isn't needed, especially if you have a quality sight and all the holes are tapped accurately.
Holding your bow, think of the sight like a door, opening that door is a rotation around the 3rd axis, in a sense.
You want the door shut, so to speak, which means, in a sense, your line of sight is at a perpendicular to it and it is perpendicular to the bow....if the sight is "off" this is akin to this door being slight ajar (in either direction).
Now imagine, instead of a door, you are holding a bubble level where the sight is.
If everything is square, then if you were to mimic a downward shot (by rotating the bubble level downward like the sight would be on a downward shot)....then the little bubble will stay centered no matter how you point downward. Now, instead, imagine the bubble level is not square....but open like a door a bit. If you rotate downward, now the bubble will go to the high point of the level's bubble chamber (to the right the way I'm envisioning it). Now, if you try to rotate the bow to put the bubble in the middle, you'd have to rotate the bow clockwise (around the second axis) and throw everything off.