1) Probably not, but maybe.
2) Most people who need a highly configurable web hosting server with full root access are better off with a VPS hosting plan. They are usually less expensive, and — if it is a cloud-based VPS plan — easier to scale.
3) The use-cases that specifically for a dedicated server plan, as opposed to a VPS plan, are increasingly rare — and if you have one, you probably know about it already.
The most likely reasons to need a dedicated server plan have to do with security and regulatory compliance — VPS plans may not satisfy certain types of privacy laws, such as HIPAA.