Does rear axle damper need replacing?

I have a 99 XLT with 69,000 miles. While I was rotating my tires this past weekend I unbolted one end of the axle damper to see if it was still good by pushing and pulling it, and it still seemed good. Does this ever need to be changed, and also what is the purpose of it? I understand this is not a cheap item either.

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Mikepier
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