You don't "need" fiber for any specific process. I can't speak for Layne, but I think he would agree that at least part of the rationale behind fiber rec's is that it helps control another variable in nutrition, that is the thermogenic effect of fiber as well as glycemic index/load of food (which may or may not be important to some) that's seen in the diet. Fiber is fermented in the large intestine of the GI tract into short chain fatty acids (proprionic and butyric acid mainly) and also stimulate production of mucous in the epithelium lining the GI tube, which lubes the tube for transit.
So, in short, is fiber beneficial outside of it's thermogenecity, control of glycemic factors, satiety, potential health benefits (that haven't been fully elucidated), etc.? I don't know, but it is controlling for another factor that contributes to body composition results and that's why I (and likely) Layne have specific fiber recommendations. 50g is about the max I'd recommend for someone on a very high carbohydrate diet (600g+), as too much fiber interferes with uptake/absorption of nutrients and micronutrients. Without seeing the specific recommendations of Dr. Norton I can't comment on where the number 50 came from, but if I had to bet it's an upper limit for fiber recs for a particular person. He's a really smart guy and I seriously doubt there's much, if anything, him and I don't see eye to eye upon besides Tampa being a great sport town :-)
tl;dr? Set a fiber goal and hit it day in and day out. Adjust your carbohydrates from there, as if you don't, you're actually adjusting 2 variables instead of 1.