There'll be a CD key for account creation, and in order to play you'll need an active account. So there's no risk of piracy, because there is no way you'll be able to play without an active account -- which means that someone, somewhere is paying a monthly fee.
That said, no, you very likely will not need the CD in the drive. I've never found an MMORPG which required the CD in the drive to play.
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