You NEED it. Policykit is a security related daemon - it restricts/permits actions based on defined policies.
Actions like - queries made by udisks, upower for auto-mount drives, like usb sticks, external hdds, sleep, hibernate etc go through policykit - and will fail if policykit isnt present.
Policykit also requires a front end for authentication if needed - policykit-1-gnome, lxpolkit or the kde equivalent.
The settings files for it are in:
Code:
/usr/share/polkit-1/actions/
directory in xml format and can be modified if needed.