Advantage Of Showing Post Archive?

Are Website Visitors Interested In Post Archives?

I'm looking at re-jigging my posts/pages layout and it seems to me a lot of 'real estate' on the side bar is given to Dated Post Archives.

I guess I'm wondering:

• What is the advantage of having an archive here when it only shows a bunch of dates. I can't imagine any visitors clicking on those. Even if you could make the archive titles more interesting, is it worth having them there?
• If you MUST have an archive list is there some other area you could place it where it doesn't take up as much space on your posts?
• Do you have to have a post archive list on your website at all?

Any comments, ideas or training on the subject would be appreciated.