It unfortunately is necessary for most orchids that I've looked into germinating from seed. The most important reasons to replate are:
- To ensure protocorms and seedlings have a continous supply of nutrients
- To reduce over crowding
Regarding the first point, most orchids generally take a couple of years to go from germination to the point where they can be deflasked and there's a finite amount of nutrients in your flasks. Your little plants will eventually use them all up and the only way to give them more is to put them on fresh media. By way of example, you probably fertilise your orchids regularly. You do this because there's no other way for your plant to get nutrients to grow if you grow in a closed environment (i.e. in pots or mounted in your home, or greenhouse) and not growing naturally on a tree in your garden say. Your plant tends to grow better and be more healthy when you do follow a fertilising schedule. It's the same for your baby orchids in their closed flasks.
Also, when you first flask your seeds, they are so tiny that you'll likely get hundreds of seed germinating in one flask. That's too much to grow happily to deflasking stage without competing for resources and weakening each other. When sowing any seed, even in your garden, they will always advise to thin them out once they've reached a certain stage. Thinning your seedlings out ensures more healthy plants.