It does need it... whenever i put the pedal into the pedalchain, i can hear the difference in tone when it's bypassed.
what type of difference?
sometimes an
electrical problem can be the cause of what sounds like really bad bypass. i'd look into that, power supplies, ext, make sure its all working.
boss pedals are not true bypass, but their bypass is perfectly acceptable.
what i've done for years and will always do is run my entire signal through one master on/off bypass loop. for several reasons, obviously 1. that is the best bypass you can have, is your signal only going through
one true bypass switch. 2. i can set up sounds with 3-4 pedals at a time and switch them all on/off at once, and the most important and most overlooked- 3. with all those pedals, power connections, patch cables, things come unplugged during performances! having one master bypass is a great backup incase things go wrong- this has saved me many times, especially in my bar-gig days where the board would get knocked around a bit more during sets, between sets, ext.
anyway, if it turns out that your power supply is okay and the pedal isin't broken, i'd agree with the others- sell it and find something that is true bypass. the dirt/overdrive market is a very big one, with new pedals constantly coming out.
good luck,
T