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What does this code do; and is it necessary?
Is there a way of removing this code in any preferences so that it doesn't automatically insert itself?
Any clarificaton on this matter would be much appreciated.
Do you need it? It depends on what you have on your page.
Can you change Dreamweaver default page? I'm sure you can, but I'm not a DW guy. But you are in luck -- lots of DW users hang out here. I'm sure that help is on the way.
c:/program files/dreamweaver 4/configuration/templates
and it is called default.html. What is bold is depending on your settings.
Make a backup copy of it and then you can change what is initially loaded when you create a new file.