Drupal Database User 1 Permissions
Short answer: yes.

Long(er) answer:
There are definitely modules that would make use of those MySQL permissions.  Not to mention administrative functions like installing new modules, doing updates, etc. 

'grant all' for your Drupal database user is the easiest/best way to do this.  However, once a site is up and running,  I would imagine that you could remove a LOT of those permissions.