Why would I install ArcSDE with 10.1?

[AlanToms]

Hello all,
Why would I install ArcSDE with 10.1?  It seems I can us ArcCatalog to create an enterprise geodatabase without SDE then have all my users use direct connections.  What am I missing?

Thank you
Alan

[RickWarner]

Vince,

Thank you for your help in easy terms to understand.

Based on what I’ve read, I’ll stick with my current setup.

[KyleDixon]

I wouldn't, we ditched ArcSDE, direct connections are much faster.