We are going to make the app available for .99 on the market, but is licensing it a must? We are worried about the license query bugging the user/always requiring network access. Should we definitely license regardless of our worries?
It's not a "must", but piracy is a big problem, and I would use the licensing library if I were you. FWIK it doesn't require the user to be always online, so it's not as intrusive as you might think it is.
People are weird - they don't think twice about buying a cup of coffee for $4 every day, but if they have the option of illegally downloading a pirated copy of a $0.99 app, they're very likely to do that instead of shelling out the buck and supporting the developer.