Can someone explain this to a soon to be rookie reloader? What is the purpose of a cannelured bullet?
The cannelure is to let the bass be crimped into the bullet, it helps keep a bullet's seating as well as seals the interior of the bullet from moisture like rainfall from entering and contaminating the powder
Do you need a crimping die to use them?
Yes you do, but whether you should or not is entirely dependent on the round you're reloading and personal taste. Pistol bullets generally need to be crimped as a last stage but they don't neccessarily need a cannellure.
For bottle necked rifle bullets it's questionable. The Lee reloading manual states that there is no accuracy benefit for crimping and a cannelure, and my own observations tend to support that. I still do a very light crimp before I store the loaded bullets though, depending on how rough I expected transport to be. Admittedly I think that's more out for peace of mind then actual measurable benefits.
Could you neck size brass and use a cannelured bullet?
Yes, a cannelured bullet is the exact same diameter as any other of the same caliber.