Lots of varying opinions. The truth of the matter is that it's very unlikely any damage will be done to an iMac if the power cuts out. Personally, though, I hate the idea of sitting in front of a desktop computer, knowing that all it takes is a slight flicker of power, and my system will reboot.
For ~$100, the peace of mind is well worth it, when it comes to a UPS.
This is the one I just bought, and it's quite excellent:
http://www.amazon.com/CyberPower-CP...660&sr=8-4&keywords=cyberpower+pure+sine+wave
It's completely up to you, but you need to ask yourself if you'd be mad if the power cut out while the computer was writing to some critical system files, and you find yourself having to reinstall the whole OS. Likely? No. But protecting yourself for a little over $100 is hardly a big deal, plus you get excellent voltage regulation, too. You may not see it under normal conditions, but your voltage might vary depending on power... "conditions."
Again, peace of mind is worth it to me. Your call, of course.