The answer appears to be "no, it is not needed. Maybe."
I changed the AndroidManifest.tmpl.xml file to not include that permission. I removed the current 'dist' to get a clean build; and it all works; at least in USB debugging mode. Even my JSONStore file that I save via Kivy is being stored without that permission.
I then confirmed with the aapt tool that the permission is not requested in the APK.
Wildly guessing: there might still be legacy functions in Kivy that need that permission; but apparently the board game I've written is not invoking any of them.
But that is a guess; I'd really appreciate any insight from developers or anyone knowledgeable of the innards of python-for-android.
Thanks,
John