Does a Context Condition Path need to exist?
Yes, the context module does not create pages, it allows you to position blocks on existing pages.

If you want a page that is not a node or a view you can use the empty page module or the panels module.

If you want a bunch of pages that are dynamic like FooBar/* where there are lots of sub pages, you could also create a custom module to create the pages, by using hook_menu() and returning an empty string for you page content.