The diodes are only required if you run a trans temp switch or some other switching method like a relay contact controlled by the t/case for instance, if you just run an auto-off-manual type switch the diodes aren't required.
As for the LEDs, they aren't "required", highly recommended though if you use the auto-off-manual control as I wouldn't recommend running too long without fans running once at temp, also they don't really need to be LEDs, they're an indicator only, internal to the switch or external to the switch also makes no difference, the switch I used has a red and green indicator built in, green for auto, red for manual..