If a USB Cable is being used between two devices, are the power wires needed?
Yes the power and ground lines are needed. The ground line is needed because the OTG feature works by grounding the ID pin the the USB plug. If the ID pin is left floating then the object configures as a device. If the pin is grounded then the object configures as a host. The power line is needed because most if not all devices use the presence of power as a trigger to initiate USB enumeration. If no power is present then the object will not check the data lines to see if something is present.