For semi-auto calibers that headspace on the mouth of the case, the Lee Factory Crimp die simply ensures that the outer diameter of your completed round is no larger than the standard established for that particular caliber.
For revolver rounds that use a roll type crimp, the FCD not only limits the maximum outer diameter, but also serves to provide that style crimp to the round.
They are not absolutely required, but they don't hurt, either.
Using a traditional bullet seating/crimping die, you are pushing a bullet into a case to a particular depth, while at the same time trying to crimp that case against the bullet. It works, but these are opposing forces. They fight each other.
Using a Lee Factory Crimp die allows you to seat the bullet to the correct depth, prior to adding crimping force, and then to add the crimp with the FCD after the bullet is seated.
I use a Lee FCD in several calibers, and FTF issues just don't exist for me.
The FCD works.