How much do characters have to develop?

[VeloZer0]

It seems like many people consider 'character development' to be the hold grail of RPG making. Every game is slandered for having not enough development, unconvincing development, or implausible development. I wish to ask, what do you think about character development?

Does every character have to undergo a life altering epiphany? Is it poor writing to include a character who has all their together at the start of the game? Is it too outlandish to have a character who goes through their entire ordeal and learns nothing? Is watching a character(s) grow the central focus of RPGs or just an element? Is it even necessary at all?

EDIT: @#$^#@. Can someone fix the typo in the thread name?