No, there are many affiliates who make money off of organic sites. However, you will get a lot more traffic, and generally higher converting traffic, through a good PPC campaign.
But no, you do not need to do PPC to make money. Just do some good seo and get your site up in the organic listings.
I think it is important to note that with adsense ads you will see money, but not a lot of it. You might see faster returns on money through an affiliate network or direct ads rather then adsense or something like that.
Its great that you are researching and really knowing your stuff before you start. Be careful however that you don't fall into the trap of only researching. For learning how to do this, you will do most of your learning once you jump in and get started.
As for cloaking, some networks frown...
While it does help to have several networks to choose from (making it easier to find ads in your niche), I agree you shouldn't get to spread out. For the successful affiliates I deal with, they usually keep it at around 3 or 4 networks tops.
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