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Do I really need wood
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You may want to have a look at the Wood Industry.
Reasons you need wood
- To build beds
- Without beds your dwarves will get unhappy thoughts from sleeping on the ground
- To build axles
- Without axles your ability to transfer power is severely limited.
- To build water wheels and windmills
- These are the only generators of power. Without them, you'll be forced to do everything manually.
- If you want obsidian short swords, they require one obsidian stone and one wood each (for a handle and scabbard, apparently).
Reasons you want wood
- It is simpler to make items from wood.
- Wood can be burnt to produce charcoal and ash, which are important ingredients in other tasks such as smelting ore, forging metal items, glass making, fertilizer for crops, and other uses.
- All metalworks (smelters, forges) and glassworks are either wood-fueled or magma-fueled. If you are planning on having any sort serious metal or glass production, then you're going to need a lot of wood, or magma (and charcoal or coal for steel).
Reasons you don't need much wood
- Everything other than beds, axles, windmills, and water wheels (and obsidian shortswords) can be made without the use of wood.
- If you have magma then you don't need wood for fuel. If you have coal, you don't need (as much) wood to produce charcoal for steel. If you have both, you don't need wood to produce metal or steel products.
- (Bituminous coal without magma triples the effective output of wood, lignite doubles it.)
- You can supplement your wood supply to a small degree via trading.
- If you're lucky enough to play in an area with an underground pool or underground river then you can grow your own wood supply underground with tower caps.