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To be needed is codependent. The one who needs is forever enslaved to the one who requites or satiates that need. To be desired, on the other hand, is healthy. I'll take health over dependency and manipulation any day. (There's a political aspect of this as well, but I won't bring it up unless you ask. :-))
It is better to be desired. If you need someone you depend of them like a crack addict depends of his next dose, it is not healthy. If you are desired, you a welcome improvement to the life of the person, but they won't kill themselves if you walk away.
I have only felt needed once or twice. Desired? Never. It's one of the perks of the lonely grumpy man package.
i think its better to be needed