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Best practice would be to always separate DEV and PROD, preferably in separate Informatica domains.
It makes maintenance and data separation much more easy and manageable.
but In case if we only go with Production license - it should not effect our work in great deal? so if i have to say its a luxury but not a neccessity - will this be right to say?
I would put it in another way- Prod domains generally are not modified as frequently due to the very nature - stability and control. If there are any changes being done for a dev activity which can impact other jobs that are running in prod, it might not be a good situation to be in (because DEV is generally a sandbox to play with the code, if I may say so).
But it all depends on how much of a control an organization would exercise, especially in a prod environment.