It is related to the Direct Line Speech channel, which is optimized for voice-in, voice-out interaction with bots.
Now to answer each of your question marks:
What should it be by default?
It should be unchecked.
And when should I enable it?
As stated in the documentation and I quote:
With the Direct Line Speech channel connected to your bot, you now need to enable Bot Framework Protocol Streaming Extensions support for optimal, low-latency interaction.
So you should enable it if and only if you're using the Direct Line Speech channel.
Is it necessary?
Yes and no.
Yes, if you're using the Direct Line Speech channel, then it is a must before you enable Web socket
support.
No, if you're not using the Direct Line Speech channel, leave it unchecked as by default.
You can also find here how to use it in your bot!