The reason for creating the partition isn't out of necessity, but for user convenience. I mentioned the reason in my original post, but it was a sentence ending a paragraph. Basically, Time Machine grows its backups to fill the free space available on the partition. It doesn't fill up immediately, since Time Machine culls its backups, but it is ever-growing. You can't go and prune the backups yourself, either. Time Machine reaches a "steady state" once it fills up the hard drive, deleting the backups itself.
You can always limit the size of the sparsebundle, then Time Machine will only grow to the size defined for the sparsebundle and not the entire drive. This avoids partitioning, resizing partitions, etc.
First, after Time Machine is set up and the first backup done, switch Time Machine off.
Then run the following commands as root (or via sudo)
# hdiutil resize -size 950g /Volumes/path/to/sparsebundle
# chflags uchg /Volumes/path/to/sparsebundle/Info.*
Now turn Time Machine back on.
That would set the size of the sparsebundle to 950GB and Time Machine backups won't exceed that, you now have put size constraints on Time Machine without going through the mess of repartitioning and wondering if any of the partitions will have enough space, if you need to adjust the size down the road, etc.
I try to avoid creating multiple partitions whenever possible because it's much more convenient to have large spaces available instead of a lot of smaller ones.
EDIT: I should add that this only works if your Time Machine is using a sparsebundle, such as when connecting to a remote disk that's connected to another Mac, Time Capsule, etc. A locally-connected external drive doesn't do this and partitioning is the only way I know of to limit how much space Time Machine uses.
EDIT 2: I should also add that with local TM disks you can simply go into the disk and manually delete older backups just as if you were deleting any other folder, you don't HAVE to let Time Machine manage its space usage on its own.
So, technically speaking, there is no case where Time Machine simply has to run until the disk is full and, back to my original point, partitioning is not necessary.