OS and Software > All Things Macintosh > [OS X] iTunes folder

[OS X] iTunes folder

A) iTunes now encompasses much more than just "tunes". For consistency's sake, they've kept the "iTunes" folder in the Music folder.

B) You don't need it unless you want to have backups for any apps that are no longer on the App Store or older versions of specific apps. You can always redownload the latest version of any app you've previously purchased or downloaded from Apple.
--
University of Southern California - Fight On!

reply to Liberty
If you plan on syncing your iPhone/iPod/iPad to the MBA then at the very least the apps on that device(s) will get downloaded to the computer. If you don't plan on syncing any of those with the MBA then you don't need it.

reply to Liberty
If you pony up for iTunes Match you don't need to copy over any of it and you can stream whatever you want. Or if you are on the same network you can use Home Sharing in iTunes to access another Mac's library to play content while you are working.

So really you don't need from iTunes if you want to save the space.

I'm in the same boat as you, 13K songs plus tons of movies and videos; a MBA with 120GB...no room for this stuff. So I use iTunes Match and Home Sharing to listen or view any of my content on my MBA.