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It is necessary to get local MySQL installed because Plesk database called "psa" can be stored only on local MySQL, there no way to move it on external MySQL.
As for client's databases, they can be stored on external MySQL which you can add to Plesk control panel > Database.
Thats what we do, we have the local mysql only do the local psa stuff for each server, then we have a centralized mysql4 and mysql5 running on seperate beefy servers that all of our windows and linux customers share.