Simply put vdroop is necessary to stop you trashing your cpu in the long run. Think of it like this, using simple science
Power = Voltage x Current
We wanna run our cpu at a set voltage so now:
Power is proportional to current
Logically your cpu uses nore power when loaded than when idling along ie it needs more current
Because of the limitations of the power circuit (and life) you cannot instantaniously supply a large current (it needs time to build up) therefore if you suddenly have to supply a large current then the voltage will momentarily sag (like if you changed up a gear on your car).
The opposite happend when the load is removed, the voltage will "overshoot" monentarily until settling back down. Now as Kris has pointed out that the purpose of vdroop is to counteract this overshoot (amongst otherthings) so instead of suddenly going up from 1.55 to say 1.85volts it'll be more like 1.55 to 1.65volts. Obviously if you subject your cpu to a constant barrage of 1.85volt spikes it won't thank you for it.
The amount of vdroop however does depend on how the board designer desides to impliment Intels guidelines on the matter, and some people feel it is a tad excessive on some boards. Also don't confuse vdroop with "vdrop" a term coined for the difference between the voltage you set in the bios and the actual voltage at idle




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